The EU has approved the world's ‘first’ law for regulating AI

The European Union has taken a groundbreaking step by approving the world's first law dedicated to regulating Artificial Intelligence (AI). The Artificial Intelligence (AI) Act is set to come into full force in 2026 and is poised to set a global benchmark for AI regulation.

The AI Act categorizes AI systems based on the potential risks they pose to people’s health, safety, and fundamental rights. The Act defines four levels of risk:

The AI Act also aims to combat disinformation and fake news. AI-generated content, including audio or video deep fakes, must be clearly labeled. This measure is particularly important in a year where eight EU member states will be holding elections.

In tandem with the EU's regulatory efforts, the World Economic Forum has launched the AI Governance Alliance. This initiative seeks to unite industry leaders, governments, academic institutions, and civil society organizations to champion the responsible global design and release of transparent and inclusive AI systems.