The European Artificial Intelligence (AI) Act became enforceable, as acknowledged by the Commission, European Parliament, and the Council, on August 1, 2024.

The act was initiated to promote accountable AI development and application in the EU. It outlines obligations for specific AI uses while minimizing administrative and financial burdens. 

Furthermore, the Commission has launched a consultation on a Code of Practice for providers of general-purpose AI (GPAI) models to address transparency, copyright-related rules, and risk management. 

The Code of Practice will be finalized by April 2025.

Analyst quicktake: The European Parliament approved the act in March 2024, and the technical details were advanced and agreed upon by EU member states' representatives in early February. With its aim to regulate and govern the use of AI, the act may introduce stricter rules and guidelines for generative models. This could impact the development, deployment, and accessibility of GenAI systems in the European Union. The industry may need to ensure compliance with transparency, accountability, and data protection requirements, potentially leading to increased costs and regulatory hurdles. On the positive side, the act may also foster a more responsible and ethical approach to GenAI, promoting trust and safeguarding against potential misuse.