The EU’s newly approved Artificial Intelligence (AI) Act—coming into force today, April 1—aims to enhance privacy protection and create legal certainty for businesses for all member states. However, Czech experts and industry leaders warn that the regulation could stifle innovation and drive investment away from the region.

The new regulation, which introduces stricter regulations on artificial intelligence applications, bans certain high-risk uses such as real-time facial recognition and automated CV screening for job applications. It classifies AI systems into four categories based on their risk level, focusing particularly on high-risk and prohibited AI systems.

It bans AI systems that manipulate or deceive individuals, exploit vulnerabilities, or discriminate unfairly. It bans systems that assess criminal risk based on personality traits, develop databases without consent, infer emotions in certain settings, or use biometric data to deduce sensitive information.

It also restricts real-time remote biometric identification in public spaces for law enforcement, except in specific high-risk situations.

If companies don’t comply with the prohibition of these AI practices, they could be fined up to EUR 35 million (CZK 874 million) or up to 7 percent of their total worldwide annual turnover.

Supporters argue the law will safeguard citizens’ rights. “We do not want a social scoring system like in China, and the AI Act should help prevent that,” Petra Stupková from the Czech Association of Artificial Intelligence told Czech media outlet iDnes.cz. However, she acknowledged that some restrictions might need adjustments to accommodate research and innovation.

Delivered by CzechTrade team Canada.
Source: Expats.cz.