European Union: Reached Council and Parliament agreement on AI Act including design requirement for "high-risk AI systems"

On 9 December 2023, the Parliament and the Council of the European Union adopted a provisional agreement on the proposal on harmonised rules on artificial intelligence (AI Act). The compromise agreement clarifies the definition of an AI system by aligning it with the OECD's proposed approach, seeking to differentiate AI from simpler software systems. The AI Act specifically exempts systems exclusively utilised for military or defence purposes and those employed solely for research, innovation, or non-professional personal use. The Act includes design requirements for so-called "high-risk AI systems" as part of a wider requirement for a risk management system (Art. 9). Specifically, identified risks should, as far as possible, through the implementation of technical measures technical measures during the design and technical process, be either eliminated, or mitigated and controlled. Further, high-risk AI systems should be designed such that they are able to be used transparently, with a sufficient level of human oversight, and with the capacity to automatically record its use. Following the provisional agreement, the next steps involve finalising the document and submitting it to the European Union Parliament and Council for adoption.