The European Union (EU) continues to assert its global leadership in establishing standards for privacy and Artificial Intelligence (AI) governance.
AI Act: The World's First AI Law
This act categorizes AI systems by risk level:
- Unacceptable risk: AI systems that manipulate human behavior or perform social scoring will be completely banned.
- High risk: AI used in healthcare, transport, recruitment... must comply with strict transparency and human oversight regulations.
- Low/Minimal risk: Applications like spam filters, AI video games.
Impact on Global Businesses
Tech giants like Meta, Google, Microsoft are forced to adjust their algorithms to comply if they want to operate in the EU market. Violations can be fined up to 7% of global revenue.
What should Vietnamese businesses note?
For software and outsourcing companies in Vietnam with clients in Europe:
- Review user data processing procedures according to new GDPR standards.
- Ensure transparency of AI/Machine Learning algorithms in products.
- Build risk reporting mechanisms and adhere to AI ethics.
Conclusion:
Complying with these new laws is not just a legal requirement but also an opportunity to enhance brand reputation in the digital era, where user trust is the most valuable asset.