The European Union has passed a sweeping law to regulate AI across the continent

The European Union has taken a significant step forward in its attempt to control the growth of generative AI. The continental lawmaking body has passed the AI Act, which is part of a multi-year effort to regulate AI while still fostering innovation.

The AI Act passed during a voting session on March 13. Before the measure was officially adopted, it was the subject of much debate in the European Parliament, and an on-demand version of that debate can be found on the Parliament’s YouTube channel.

The AI Act will give the E.U. the regulatory power to act on issues that arise in the field of AI development, including deepfakes, election misinformation, and copyright infringement. Like several major social platforms, the E.U. will require labels on AI-generated content to cut down on confusion.

The new law’s structure allows it to strengthen regulations without preventing companies from developing AI-inspired tools. According to Digiday, projects that don’t threaten citizens’ rights or safety will be classified as “low risk,” while innovations in fields like medicine, transportation, and law enforcement will be deemed “high risk” and subjected to higher standards.

“We want our citizens to know that thanks to our rules, we can protect them and they can trust the businesses that will develop AI in Europe and that this is a way to support innovation,” said Italian Member of Parliament Brando Benifei

. “Having in mind our fundamental values, protection of consumers or workers of citizens, transparency for businesses for downstream operators.”

In comparison to its American counterpart, the E.U. has taken greater strides to pass laws that address internet-related concerns. In recent years, the 27-country union has adopted regulations related to issues like copyright infringement, deceptive crypto ads, and hate speech. The landmark Digital Services Act, which was passed in 2022, threatens fines for social platforms that fail to control violative content. The enforcement of that law has led to a lawsuit from social giants TikTok and Meta.

Per Digiday, the AI Act is expected to be officially ratified in the spring. Once it is, the E.U. will institute a six-month grace period before it starts dinging companies for prohibited AI products. Individual fines could rise as high as €35 million, which translates to about $38 million.