How does the Act complement GDPR?
The EU AI Act complements GDPR by introducing harmonized rules for high-risk systems while minimizing the risk of algorithmic discrimination. It ensures data protection and privacy requirements are met throughout the lifecycle of the system.
How does it impact businesses financially?
Estimated compliance costs for high-risk systems range between EUR €6,000 and €7,000. Annual oversight costs range from €5,000 to €8,000. For an average high-risk system valued at €170,000, compliance costs account for approximately 5% of the system's value.
What are the maximum administrative fines?
Non-compliance with prohibited practices or data requirements can lead to fines of up to €500,000. Other violations can result in administrative fines of up to €250,000. (Note: These reflect figures from earlier drafts; the final ratified act has higher tier caps up to 7% of turnover).
Does it apply to systems launched before the Act?
The Regulation applies to systems launched before the effective date only if significant changes are made to their design or intended purpose after that date.