The European Union has enacted the world's first comprehensive AI regulation framework, known as the EU Artificial Intelligence Act.

The Act introduces a phased approach to AI governance, focusing on responsible innovation while banning high-risk AI practices.

Mandatory transparency for tech companies includes disclosing AI use and keeping detailed technical documentation.

Prohibitions under the Act target harmful AI practices like subliminal manipulation, social scoring, and remote biometric identification.

AI systems in critical areas such as infrastructure, education, and employment are labeled high-risk and subject to stricter control.

Non-compliance with the Act could result in substantial fines, up to 7 percent of a company's global revenue or $38 million.

The Act's extraterritorial scope means that US companies are also affected if their AI systems serve EU customers.

This legislation is likely to influence global AI policy, setting a precedent for other countries to follow.

While potentially increasing compliance costs and impacting innovation, the Act aims to foster sustainable growth in AI technology.

US policymakers are urged to engage internationally to harmonize AI governance and avoid conflicting regulations.