The EU AI Act: A Comprehensive Overview

2 minute read | October.22.2024

This update is part of our EU AI Act Series. Learn more about the EU AI Act here.

The European Union set a global precedent by adopting the EU Artificial Intelligence Act (AI Act), the world's first comprehensive AI law. In our in-depth article, Dr. Christian Schröder and Dr. Daniel Ashkar provide expert analysis of this landmark law, offering key insights for stakeholders across various sectors.

After reading this article, you will have gained valuable insights on the following topics:

Historical Context and Legislative Evolution
Trace the journey of the AI Act from its initial draft by the European Commission in 2021, through amendments by the European Parliament and EU Council, to its final adoption in 2024. Understand the pivotal moments and negotiations that shaped this milestone regulation.

Detailed Breakdown of the AI Act Structure
Gain a clear understanding of the AI Act's framework, including its risk-based approach to classifying AI systems. Learn about the specific requirements and legal consequences for different categories of AI, from high-risk systems to general-purpose AI models.

Key Compliance Requirements
Delve into the stringent obligations imposed on providers, deployers and other operators. The article outlines necessary steps for compliance, including those related to risk management systems, data governance, technical documentation and human oversight.

Implications for Businesses and Innovation
Explore the potential impact of the AI Act on innovation and business operations in the EU and globally. The authors discuss the balance the AI Act seeks to strike between fostering technological advancement and ensuring robust regulatory oversight.

Enforcement and Fines
Understand the enforcement mechanisms and significant fines for non-compliance, drawing parallels with the General Data Protection Regulation (GDPR). The article also highlights the roles of national authorities and the newly established Office for Artificial Intelligence in enforcing the AI Act.

Global Influence and Future Outlook
Consider the broader implications of the AI Act as a potential global standard for artificial intelligence regulation. The authors provide a forward-looking perspective on how this legislation might influence AI governance in other regions.

This comprehensive article is an essential read for AI developers, legal professionals and business leaders. It equips you with the knowledge needed to navigate the complexities of the AI Act and ensure compliance with its rigorous standards.

Read the full article to stay informed and prepare for the future of AI regulation.

The EU AI Act Series: Key Takeaways for Companies Using and Developing AI

Authors

Dr. Christian Schröder Partner, Cyber, Privacy & Data Innovation, Technology Transactions

Düsseldorf

See my bio

D:+49 211 3678 7269
E: [email protected]

Practice:

Technology & Innovation Sector
Cyber, Privacy & Data Innovation
Technology Transactions
Technology Companies Group
Automotive Technology & Mobility
Strategic Advisory & Government Enforcement (SAGE)

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Dr. Christian Schröder Partner

Düsseldorf

Christian helps clients consider the privacy and artificial intelligence implications of new technology, supports their compliance programs, and helps them stay ahead of enforcement trends. One particular focus of his work deals with internal data transfer agreements, external data transfers with external providers, and product launches that comply with international data protection standards, as well as privacy requirements for connected cars. Furthermore, Christian provides guidance on privacy and data protection considerations for developing, acquiring, using, licensing and selling technology, data and intellectual property, including M&A transactions and IP focused joint ventures. He supports companies on the set-up of webshops, outsourcings, license agreements, in cases of trademark or unfair and deceptive trade practice issues, as well as on hard and software license and information technology (IT) project agreements.

Christian maintains strong working relationships with German data protection authorities and EU regulatory authorities with jurisdiction over privacy and data security matters. He effectively defends companies in cybersecurity and privacy-related investigations initiated by EU regulatory authorities. He also engages with authorities on behalf of clients and helps clients avoid proceedings and possible litigation. When litigation can't be avoided, Christian vigorously defends his clients.

For companies facing global cybersecurity incidents, Christian helps with crisis mitigation, including counseling on notification requirements, coordinating media strategies, and representing clients before data protection authorities in related regulatory investigations.

Christian regularly contributes practical thought leadership to global privacy industry publications and German privacy books and journals. Christian authors the Chapter V (international data transfers) of Germany’s leading GDPR commentary Kühling/Buchner (4th ed.) and is co-author to the Corporate Privacy Handbook (Betrieblicher Datenschutz). As an active member of the Sedona Conference, Christian drives the development and understanding of cross border privacy. He also participates in, hosts and moderates speaking programs with fellow private practitioners, EU data protection authorities, and academics focused on privacy and data security. Legal 500 Germany named Christian one of the top 15 practitioners in 2023 and noted that he is "a pioneer in the legal field, a data protection guru." They also recognized Christian and Orrick as "truly global" and how that it is "vital as they require the various leaders of each region to participate and bring issues to the table as a forum".

Prior to working in private practice, Christian interned with the German Federal Data Protection Commissioner and www.epic.org.

Dr. Daniel Ashkar Counsel, General Data Protection Regulation, Cyber, Privacy & Data Innovation

Munich

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D:+49 89 383980123
E: [email protected]

Practice:

Technology & Innovation Sector
General Data Protection Regulation
Cyber, Privacy & Data Innovation
Artificial Intelligence (AI)
Artificial Intelligence
Technology Transactions
Strategic Advisory & Government Enforcement (SAGE)

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Dr. Daniel Ashkar Counsel

Munich

Having concentrated on data privacy law since 2012, Daniel provides comprehensive data privacy and cybersecurity advisory support to clients and has extensive experience in the areas of international data transfers (including on EU Standard Contractual Clauses and Binding Corporate Rules) as well as topics relating to the “Schrems II” judgment.

Daniel further drafts data privacy contracts (such as data processing agreements and joint controller agreements) as well as data privacy policies/notices and consent forms. On transactional matters, he supports clients with outsourcings and due diligences in the course of M&A transactions. Daniel also advises on data subject rights requests, data breaches and notification requirements related thereto, e-discovery requests, website tracking, marketing measures, privacy impact assessments as well as data privacy topics in the employment and reinsurance context.

He further advises on IT/IP and technology-related matters, including on contracts and matters relating to unfair and deceptive trade practices. Daniel also possesses years of experience regarding legal disputes and litigation matters and has represented clients in proceedings before different courts in Germany.

Prior to joining Orrick, Daniel was an in-house counsel for a German car maker and for one of the largest reinsurance corporations in the world. His in-house experiences at these large German multinationals allow him to understand the needs and requirements of globally operating clients.

Daniel started his career at another global law firm where he worked for several years with a focus on data privacy and litigation matters. He also wrote his doctoral thesis on data privacy law.