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Legal Opinion

Empowering Innovation and Protecting Citizens - A Closer Look At The EU AI Act

16th October 2023

Sandip Patel KC
Empowering Innovation and Protecting Citizens - A Closer Look At The EU AI Act


Artificial Intelligence (AI) is transforming industries and reshaping the way we live and work. As AI evolves, so do the concerns around its ethical and responsible use. Recognizing the need for a robust and comprehensive regulatory framework, the European Union (EU) has recently introduced the EU AI Act. This landmark legislation aims to strike a balance between fostering innovation and protecting citizens' rights. In this blog, we delve into the key aspects of the EU AI Act and its potential impact.

Comprehensive Regulation

The EU AI Act aims to provide a transparent and harmonized regulatory framework for AI systems used in Europe. It categorizes AI systems into four risk levels (unacceptable, high, limited, and minimal risk) and establishes specific requirements and obligations for each. By setting clear rules, the Act ensures accountability and helps instill trust in AI technology.

Prohibition of Unacceptable Risk AI

One of the crucial aspects of the Act is its prohibition on AI systems with unacceptable risks, such as those that threaten human safety or manipulate individuals' behavior. This ban on high-risk AI ensures the protection of citizens while fostering innovation in AI that brings genuine value and is aligned with society's values.

Mandatory Transparency and Explainability

To address concerns around biased and unaccountable AI, the EU AI Act mandates transparency and explainability for AI systems. This means that users and individuals impacted by automated decision-making must receive clear information regarding AI's underlying logic and receive explanations for decisions that affect them. This provision enhances trust and empowers individuals to understand and challenge decisions made by AI systems.

Regulatory Oversight and Testing

The Act introduces a European Artificial Intelligence Board (EAIB) as a central regulatory body responsible for overseeing and enforcing the Act's provisions. The board will be tasked with supervising conformity assessments, testing, and certification processes for high-risk AI systems. This independent authority ensures that AI developers and deployers adhere to ethical and legal standards, fostering responsible innovation in the AI space.

International Cooperation

Recognizing the global nature of AI development and deployment, the EU AI Act emphasizes the importance of international cooperation. The Act promotes collaboration with non-EU countries, aiming to align regulatory approaches and standards globally. This cooperative effort fosters a shared understanding of AI risks and helps avoid regulatory fragmentation, benefiting both EU citizens and the global AI community.


As AI continues to revolutionize various sectors, it is crucial to have a robust regulatory framework that allows for innovation while safeguarding citizens' rights and well-being. The EU AI Act represents a significant step forward in this regard, offering guidelines and standards that ensure the responsible and ethical use of AI. By establishing transparency, explainability, and accountability, this legislation instills trust and confidence in AI systems. As the EU leads the way in regulating AI, other regions may look to the EU AI Act as a benchmark while developing their own regulations. Ultimately, the Act paves the way for a future where AI flourishes in a safe, transparent, and people-centric manner.