EU to Regulate AI Tools Including ChatGPT & Midjourney

EU to Regulate AI Tools Including ChatGPT & Midjourney

The EU moves to regulate AI tools like ChatGPT and Midjourney, classifying risks and requiring disclosure of copyrighted material use.

The rapid growth of artificial intelligence (AI) in content creation has led to significant controversies concerning the use of copyrighted materials by AI tools. In response, European Union (EU) legislators have stepped in with a new bill draft that aims to control AI technology and its developers. With risk classifications for AI tools and a requirement for generative AI applications to disclose the use of copyrighted materials, the bill is an essential part of the EU’s Artificial Intelligence Act that has been under development for nearly two years.

AI Risk Classification and Stricter Transparency Procedures

The proposed bill, which currently awaits the next round of deliberations among legislatures and member states, seeks to categorize AI tools based on their risk levels, from minimal and limited to unacceptable. While high-risk AI tools will not face an outright ban, they will undergo stringent transparency procedures. For instance, generative AI tools such as ChatGPT and Midjourney will need to reveal any copyrighted materials utilized during the AI training process.

The bill’s present state serves as a middle ground between extreme surveillance and over-regulation. It aims to protect citizens while fostering innovation and economic growth. Svenja Hahn, a European Parliament member, supports the bill’s balanced approach to AI regulation, emphasizing the importance of finding the right equilibrium.

The recent release of the latest edition of Eurofi’s magazine underscores the importance of addressing AI regulation. Eurofi, a European think tank consisting of public and private sector enterprises, dedicated an entire section to AI and machine learning (ML) applications in the EU’s finance industry. Moreover, the section comprises five mini-essays discussing AI innovation and regulation, all of which reference the forthcoming Artificial Intelligence Act.

One of the mini-essays’ authors, Georgina Bulkeley, Director for EMEA Financial Services Solutions at Google Cloud, underlines the significance of AI regulation. She insists that AI is too vital not to regulate and that it is equally important to regulate it effectively. The presence of these essays in the magazine highlights the urgent need for the EU to tackle AI regulation, particularly within the financial sector.

GDPR Compliance Concerns for US AI Companies

The EU’s data watchdog has also raised concerns about the potential difficulties US-based AI companies might encounter if they do not comply with GDPR. This development accentuates the growing importance of AI regulation worldwide as AI continues to transform industries and affect various aspects of daily life.

As the details of the bill are finalized in the upcoming deliberations, the legislation has the potential to significantly impact AI development and usage within the EU. By mandating the disclosure of copyrighted materials and assigning risk classifications to AI tools, the bill strives to achieve a balance between safeguarding citizens and promoting innovation. 


About Dren Hima

Being exposed to the crypto industry for the last few years has given me valuable experience with market analyses (technical and fundamental) as well as blockchain technology in general. As the content editor and a market analyst of Walletor, I strive to share the latest developments of the crypto industry, while also providing a unique educational experience for all Crypto & FinTech enthusiasts.