Generative AI tools are flourishing day by day. With the increased demand and use, there is a considerable need to regulate the use of tools like ChatGPT, Midjourney etc., in order to make them transparent in their operations. According to Reuters, the companies using generative tools are required to disclose any copyrighted materials used to develop their systems as per the EU agreement, which is the world’s first comprehensive law governing the technology.

The European Commission has been drafting the AI Act for the last two years to regulate the booming AI technology, which has undergone a significant surge in investment and popularity after the arrival of ChatGPT, OpenAI’s AI-powered chatbot.

The members of the European Parliament have agreed to push the draft to the next stage, the trilogies, during which the EU lawmakers and member states will develop the bill’s final details. According to the proposal, these AI tools will be classified under their perceived risk level, from minimal to limited, high and unacceptable. The act focuses on biometric surveillance, spreading misinformation or discriminatory languages. The high-risk tools are not expected to be banned but are expected to be highly transparent in their operations.

The provision was a late addition drawn up within the last two weeks. A few of the committee members initially proposed to ban the copyrighted material that are used to train the generative AI models together and was abandoned, favouring the transparency requirement.

Svenja Hahn, a European Parliament deputy, said, “Against conservative wishes for more surveillance and leftist fantasies of over-regulation, parliament found a solid compromise that would regulate AI proportionately, protect citizens’ rights as well as foster innovation and boost the economy.”

Macquarie analyst Fred Havemeyer told Reuters that the proposal put forward by the EU was diplomatic rather than a “ban first and ask questions later” approach. “The EU has been on the frontier of regulating AI technology”, he added.