The European Parliament has approved groundbreaking AI legislation that sets the world's strictest rules on artificial intelligence, marking a historic shift in how governments will regulate the rapidly evolving technology.
Under the new legislation, tech companies operating in the EU must clearly label all AI-generated content, conduct regular audits of their algorithms, and report any harmful incidents to regulators. Companies that violate the rules face fines of up to 7% of their global revenue — a figure that could amount to billions for the likes of Google and Meta.
Major technology companies have expressed concern about the regulatory burden. However, EU lawmakers have defended the rules, arguing that protecting citizens from AI risks is essential as the technology becomes more widespread.
Starting immediately, European users must see clear labels on any AI-generated content. Websites that use AI to create content must display a disclaimer. The rules also include provisions for data protection and algorithmic transparency.