As we previously reported, the AI Act adopts a risk-based approach to regulation, aiming to balance promoting innovation and technological advancement with the protection of workers and citizens. 

It emphasises establishing legal certainty for businesses and investors, recognising the importance of clear regulatory guidelines for fostering investment and innovation in AI technologies.

The AI Act introduces comprehensive regulations for developing, deploying, and using AI technologies.

The legislation's risk-based framework classifies and regulates AI applications according to the level of risk they pose, from minimal to high. This approach aims to protect workers and businesses without stifling technological progress. For businesses, this means a clearer understanding of the regulatory expectations for different AI applications, enabling more informed decision-making and strategic planning.

BusinessEurope Director General Markus J. Beyrer noted that the act's effectiveness will hinge on its execution. Beyrer highlights the importance of legal certainty and the practical interpretation of the law, pointing out that the need for extensive secondary legislation and guidelines could complicate the regulatory landscape. For businesses investing in AI, understanding the legal requirements and how they apply in practice is vital for navigating the regulatory environment and making sound investment decisions.

Furthermore, Beyrer underscores the necessity for Europe to lead in rulemaking and support and facilitate AI development. This includes easing access to capital and financing for AI initiatives, which is essential for maintaining Europe's competitiveness on the global stage. The European Commission's ambitious investment targets for AI underscore the potential for growth in this sector. However, achieving these goals will require a concerted effort to align regulatory frameworks with the realities of AI development and economic conditions.

The agreed text must now be formally adopted by both Parliament and Council.