AI act implications

The Artificial Intelligence Act REGULATION (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 is the first framework at EU level to lay down harmonised rules on the use of AI systems, prohibitions on certain AI practices, specific requirements for high-risk AI systems and obligations for operators of such systems.

Regulation (EU) 2024/1689 establishes a comprehensive legal framework for the development, use and regulation of artificial intelligence (AI) systems in the EU, thereby introducing specific requirements for industries and the public sector, including the Slovenian market. This regulation aims to ensure the compliance of UI systems with EU fundamental rights and principles such as health protection, security, democracy and the rule of law, and to manage the risks posed by UI. In the following, I summarize the key impacts, milestones and effects of the regulation on industries and the public sector in Slovenia.

Impact on individual industries

1. Technology sector (specifically for UI developers) :
   • The regulation sets strict requirements for high-risk UI systems that are often used in the technology sector, such as facial recognition systems, analytics and decision automation. The developers of these systems will have to ensure compliance with requirements covering transparency, traceability, data security and respect for fundamental rights.
   • Each UI system will have to obtain certification before being available on the EU market, which will affect the time and costs of development and implementation of new technologies.
2. Financial sector :
   • The use of UI for financial analysis, credit risk assessments and advisory services will have to follow strict regulatory guidelines regarding accountability and transparency.
   • Automated lending decision-making and risk analysis systems will also need to be transparent and non-discriminatory, which means additional costs to maintain compliance.
3. Manufacturing sector (industrial automation) :
   • Companies using UI to automate and optimize production will need to ensure that their systems are designed according to security standards.
   • Potrebna bo ocena tveganj za UI v primeru, da avtomatizacija vključuje nevarne naloge ali kritične infrastrukture. Stroški skladnosti se lahko povečajo, zlasti za manjša podjetja.
4. Healthcare :
   • The healthcare sector, which relies on UI for diagnostic tools, health risk prediction and treatment recommendations, will need to ensure that these systems are tested and verified for accuracy, reliability and compliance with personal data protection regulations.
   • For the use of UI in healthcare, additional steps for certification and traceability will be prescribed, which may increase the development and implementation time of new solutions.
5. Transport and logistics (including autonomous vehicles) :
   • The regulation introduces requirements for the use of AI in transport, especially for autonomous vehicles and drones, where safety, reliability and responsibility are key elements.
   • Manufacturers will have to provide certification and demonstrate safety mechanisms before putting vehicles and systems into circulation.

Impact on the public sector

The public sector will have to use UI responsibly, especially for tasks that affect the fundamental rights of citizens. UI systems used by public authorities will thus be subject to stricter verification and certification for compliance.

1. Use of UI for public services :
   • Public organizations will need to obtain certified UI systems for tasks such as security surveillance technology, social services, decision automation in the allocation of social assistance or other benefits.
   • To prevent biased or unfair decision-making, authorities will have to ensure that UI is designed in a transparent and non-discriminatory manner, which may prolong the implementation of such systems in the public sector.
2. Data collection and transparency :
   • Public institutions will have to strictly comply with the requirements for the protection of personal data when using UI, thus ensuring the trust of citizens.
   • The emphasis is on responsibility for all algorithms that affect access to public services or other rights, which means stricter control procedures and security standards for all UI infrastructure.

Key dates and milestones

• 2024 – Publication and adoption of the regulation : The regulation was adopted on 13 June 2024 and entered into force after publication in the Official Journal of the EU.
• 2025 – Start of use : It is envisaged that companies and public institutions will have a certain transition period to adapt existing UI systems. The start of use date is likely to be set to 2025.
• 2026 – First conformity assessment and verification of high-risk UI systems : The certification system for high-risk UI is expected to become mandatory.
• 2030 – Full implementation and compliance review of the regulation : By this date, the regulation will be fully implemented, all industries are expected to be compliant, and regular compliance reviews are planned.

Specific dates:

Entry into force and application This Regulation shall enter into force on the twentieth day following its publication in the Official Journal of the European Union. It applies from 2 August 2026.

However:

(a) Chapters I and II shall apply from 2 February 2025;

(b) Chapter III, Section 4, Chapter V, Chapter VII and Chapter XII and Article 78 shall apply from 2 August 2025, except for Article 101;

(c) Article 6(1) and the corresponding obligations from this Regulation shall apply from 2 August 2027.

This Regulation is fully binding and directly applicable in all Member States. Done at Brussels, 13 June 2024

Regulation (EU) 2024/1689 will require compliance with complex safety and ethical standards, which brings significant financial and organizational challenges for industries and the public sector.