{"id":11549,"date":"2024-06-19T14:45:29","date_gmt":"2024-06-19T14:45:29","guid":{"rendered":"https:\/\/www.americanconference.com\/fcpa-dc\/?page_id=11549"},"modified":"2024-06-19T14:56:15","modified_gmt":"2024-06-19T14:56:15","slug":"u-s-implications-of-the-eu-ai-act","status":"publish","type":"page","link":"https:\/\/www.americanconference.com\/fcpa-dc\/aci-insights\/u-s-implications-of-the-eu-ai-act\/","title":{"rendered":"U.S. Implications of the EU AI Act"},"content":{"rendered":"
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By Jaclyn Jaeger<\/p>\r\n

Wednesday, June 19, 2024<\/p>\r\n<\/div>\r\n\r\n

The European Union (EU) is leading the global charge with AI regulations. U.S. companies are not beyond their regulatory reach, however, and should be preparing their AI risk mitigation efforts accordingly.<\/p>\r\n \r\n

\u201cThe EU is taking a highly regulated approach to AI,\u201d said Edward Turtle, an associate at law firm Cooley in the firm\u2019s London office. At the center of it all is \u201ca completely new, bespoke AI regulatory regime, commonly referred to as the AI Act.\u201d<\/p>\r\n \r\n

On May 21, 2024, the Council of the European Union gave final approval of the AI Act<\/a>, following the EU Parliament\u2019s vote to adopt the legislation on March 13. The European Council\u2019s final vote cleared the way for its formal signature and publication in the Official Journal of the EU.<\/p>\r\n \r\n

Turtle noted that the importance of the AI Act is that it is \u201cthe first law in the world to specifically regulate AI technologies on a horizontal basis, meaning across all<\/em> sectors.\u201d<\/p>\r\n \r\n

From a legal and compliance standpoint, the international scope of the AI Act regulates AI systems deployed by companies wherever they are located in the world, including U.S. companies, so long as the AI systems affect users in the EU.<\/p>\r\n \r\n

Moreover, the reverberations of the AI Act could potentially reach other countries, who may use it as a regulatory blueprint, and so even companies whose AI systems do not affect users in the EU should still be on alert. \u201cMany are predicting that EU regulation on AI will be influential in determining how AI systems are regulated elsewhere in the world, including in the United States,\u201d Turtle said.<\/p>\r\n \r\n

High-Risk AI Systems<\/strong><\/p>\r\n \r\n

As laid out by the European Commission, the AI rules will, in part:<\/p>\r\n \r\n\t