bbieron@platformeconomyinsights.com

First EU AI Act Rules Come into Force Banning Unacceptable AI Uses

Feb 12, 2025

Report from TechCrunch

In Brief – The first regulatory compliance deadline of the EU AI Act went into effect on February 2, 2025, with companies required to comply with the rules related to AI applications that are prohibited under the law except with very limited exceptions. The AI Act categorizes AI applications into four risk levels: minimal, limited, high, and unacceptable. The initial set of rules apply to the highest risk AI systems that are basically never allowed. They include systems to build social credit scores or determine individuals’ risk profiles, using biometrics to infer a person’s personal characteristics, like their sexual orientation, or systems that try to infer peoples’ emotions at work or school. The collection of “real time” facial recognition in public places is restricted but not banned for law enforcement. The law also prohibits the creation, or expansion, of facial recognition databases from security cameras, or, in a shot at Clearview AI, from scraping images from online sources. While complying with this first set of rules will be mostly pro forma for large AI developers, a lengthy compliance timeline related to other AI Act guidelines follows, including the rules to be imposed on the largest general Generative AI systems.

Context – The biggest question in AI public policy remains whether governments are moving toward direct regulation or “soft law” governance. Some believe regulatory guardrails will benefit AI development by easing user uncertainty. Others argue the burdens will breed uncertainty, slow innovation, and drive entrepreneurs and investment elsewhere. The EU’s AI Act is the standard for regulation. The Trump Administration revoked the Biden AI executive order and is in the investment-focused camp, and the Starmer Government is focused on AI investment as well. Inside the EU, final AI Act holdouts included champions of local generative AI leaders such as France’s Mistral. The breakthroughs of China-based AI upstart DeepSeek gives EU challengers hope, but the coming rounds of the EU’s AI regulations are unlike anything likely to emerge in the US, or in China either, where AI guardrails are focused on state censorship rules.

View By Monthly
Latest Blog
European Commission Issues AI Content Notification Rules

Report from MediaPost In Brief – The AI transparency rules required by Article 50 of the EU’s AI Act have taken effect, requiring companies to clearly disclose when users are interacting with artificial intelligence or viewing AI-generated or manipulated images, audio...

More Follow-On Lawsuits for Google Likely After Latest DMA Fine

Report from Reuters In Brief – European lawyers and litigation financiers say that the European Commission’s recent decision to fine Google $1 billion for violating the Digital Markets Act (DMA) may add to the wave of private antitrust lawsuits that the search giant...

More Really Smart Tech People Call for International AI Governance

Report from the Washington Post In Brief – OpenAI and Anthropic have endorsed a petition urging the US government to help create an international regime to slow down and regulate the pace of “automated AI development.” It is signed by over 1,200 “employees of frontier...

Judge Dismisses Google’s DMCA Search Scraping Lawsuit

Report from MediaPost In Brief – Federal District Court Judge Yvonne Gonzalez Rogers has dismissed Google's complaint against the Texas-based company SerpApi for allegedly violating the Digital Millennium Copyright Act (DMCA) anti-circumvention provisions by evading...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required