EU's AI law may increase cost burden on firms

The European Parliament's approval of the world's first rules to govern artificial intelligence (AI) sets a clear regulatory framework, and the Indian companies conducting business or catering to clientele in the European Union (EU) will need to adhere to it, experts said.

- ASHUTOSH MISHRA

The Artificial Intelligence Act was passed by lawmakers on Wednesday. It lays down rules and guidelines for specific risks associated with the use of AI in areas like biometric authentication, facial recognition, high-risk domains such as healthcare and deep fakes. The experts believe the comprehensive framework will increase the cost and compliance burden of these companies.