The EU has unveiled the AI Act, setting new global standards for safe and ethical AI development. It takes a risk-based approach with tailored compliance for different AI applications. While promoting transparency, it presents significant implementation challenges for businesses. Non-compliance risks severe penalties up to 6% of global turnover. To navigate this, AI companies must invest in ethical AI practices, engage regulators, and potentially establish compliance teams. The Act is an opportunity to lead responsibly in AI while building user trust.
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