The EU aims to lead the world in Artificial Intelligence (AI) regulation with its proposal for Harmonised Rules on Artificial Intelligence (EU AI Act). It seeks to lay out a normative framework so that risks of AI systems are managed and mitigated to build trust in AI systems used in the EU and protect the fundamental rights of EU citizens.

In doing so, the EU AI Act introduces a risk-based approach for AI systems, which defines three levels of risk for AI systems: minimal, high, and unacceptable; classifies general purpose AI (GPAI) models according to their systemic impact; and subject a certain group of AI systems interacting with users to a set of transparency obligations. Penalties for non-compliance also follow a tiered system, with more severe violations of obligations and requirements carrying heftier penalties.