A discussion on the European Union's ground-breaking bill on AI, its implications for businesses, and specific requirements for insurance.

The European Union has agreed on a ground-breaking bill to ensure AI in Europe is safe, respects fundamental rights and democracy, while businesses can thrive and expand. The Artificial Intelligence Act aims to ensure that fundamental rights, democracy, the rule of law and environmental sustainability are protected from high-risk AI, while boosting innovation and making Europe a leader in the field.

The rules establish obligations for AI based on its potential risks and level of impact. Firms that fail to comply with the rules face fines ranging from E35m or 7% of global turnover to E7.5m or 1.5% of turnover, depending on the infringement and size of the company. Why was this act introduced, what does it aim to achieve, what impact will it have upon European firms that use AI in their businesses and what must they do to ensure they are compliant? The insurance sector and banking sector have been singled out as high risk by the EU – why is this and what specific requirements do they face?