The European Union's ongoing work on the EU AI Act will affect the entire AI industry and regulate AI systems based on risk classification. High-risk AI systems will be subject to a comprehensive list of requirements, while low-risk AI systems will explore the feasibility of voluntary codes of conduct. The EU AI Act is expected to become the gold standard for the AI industry, and enterprises using AI systems are advised to prepare for compliance early to avoid financial burden and penalties for non-compliance. The exact pathway for compliance will depend on the unique circumstances of each enterprise.

The EU AI Act is expected to pass European legislative procedures by the end of 2023, with a grace period of two to three years before it comes into force. The Act is focused on consumer protection rather than product safety legislation and relies heavily on standards and implementing acts. While there have been agreements made on some provisions of the Act, controversial elements such as definitions remain uncertain. The EU and the US have adopted different approaches to AI regulation, and the world's first comprehensive AI regulation is still being discussed. The uncertainty surrounding the Act has created industry interest in risk assessment, compliance tools, and protective measures.

Over 110 AI, data governance, and civil rights academics have signed an appeal calling for all AI systems under the EU AI Act to undergo a Fundamental Rights Impact Assessment (FRIA). The appeal, from the Brussels Privacy Hub, aims to mitigate the risks associated with AI deployment through comprehensive ex-ante safeguards. Passed by the European Parliament on 14 June 2023, the final version of the EU AI Act is expected to be finalised by the end of the year, with penalties of up to €40 million or 7% of global turnover for non-compliance. The appeal also calls for the development of criteria for evaluating the impact of AI on fundamental rights, transparency on FRIA results, and participation and involvement of end-users and independent public authorities in the impact assessment process, among other provisions.

Switzerland is actively monitoring AI regulatory developments in the EU and has its own guidelines for AI adoption in the federal administration. However, the country has yet to propose binding regulations for AI use. The Federal Council has called for increased efforts to converge with global initiatives and close the gap between Switzerland's approach and other international approaches to AI regulation. Switzerland is investing in AI research and development initiatives to position itself as a leader in the field. Holistic AI can help navigate global AI regulations. This article is for informational purposes only and does not provide legal advice.

The European Commission has designated Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft as "gatekeepers" under the Digital Markets Act (DMA). These companies operate 22 core platform services subject to new regulations promoting fair competition and consumer choice. Gatekeepers must conduct independent annual audits of their customer profiling methods and comply with rules relating to interactions with other businesses, consumers, advertisers, and publishers on their platforms. Failure to comply could result in fines and periodic penalty payments. The DMA will work in tandem with the AI Act and Digital Services Act.