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European AI OfficeCNBC
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80% Informative
The European Union's landmark artificial intelligence law enters into force Thursday .
The AI Act aims to govern the way companies develop, use and apply AI .
It will primarily target large U.S. technology companies, which are currently the primary builders and developers of the most advanced AI systems.
The legislation applies a risk-based approach to regulating AI .
Companies that breach the EU AI Act could be fined between 35 million euros ( $41 million ) or 7% of their global annual revenues.
Most of the provisions under the law won't actually come into effect until at least 2026 .
Generative AI systems that are currently commercially available are granted a "transition period" of 36 months to get their systems into compliance.
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