Duties and Penalties
The new EU law on AI imposes a number of obligations on companies and provides for high penalties for non-compliance:
- Violation of prohibitions: up to EUR 35 million or 7% of the total annual global turnover.
- Violation of a number of rules: fines of EUR 15 million or 3% of the total annual global turnover.
- Providing incorrect information: penalties of up to EUR 7,5 million or 1% of total annual global turnover for providing incorrect, incomplete or misleading information.
How To Avoid Penalties: Three Key Actions
1 ️ ⃣ Ethics Awareness and Law Knowledge based on Behavioral Teachings
Companies should regularly organize workshops for their teams that combine knowledge of AI ethics, applicable legal regulations and behavioral sciences. Such trainings help employees understand how decisions made by algorithms affect human behavior and what is the ethical and legal framework for the use of AI. This will make employees aware of what practices are acceptable and which may expose the company to sanctions.
2 ️ ⃣ Auditing Dark Patterns Based on Behavioral Economics
Dark patterns are techniques in user interfaces that manipulate user behavior, prompting them to make decisions that are not necessarily in their best interests. Companies should conduct regular audits of their user interfaces using behavioral economics tools and methods. The goal is to ensure that interfaces support informed and voluntary decisions of users, not manipulate them. Eliminating dark patterns increases user confidence and helps avoid legal consequences.
3 ️ ⃣ Integrating Ethics, Law, and Behavioral Knowledge at Every Stage of Product Development
Ethics, regulatory compliance and knowledge of human behaviour should be integral to every stage of the product lifecycle. From concept and design, through development and testing, to implementation and monitoring, every decision should take these aspects into account. Companies should put in place mechanisms to ensure that ethical and legal principles are followed at every stage of the product development process.
Ethical AI & Behavior Framework
To help companies create products that are compatible with the concept of Trustworthy AI, we have developed Ethical AI & Behavior Framework. It is a tool that integrates knowledge of ethics, law and behavioral sciences, helping companies design and implement AI in a responsible and transparent way.
By understanding human behavior, the context in which it occurs, and translating this knowledge into practical action, companies can avoid high penalties and build trust among their customers. Our framework helps create AI that not only meets legal requirements, but also works in the interests of users.
summary
The new EU law on artificial intelligence poses many challenges for companies, but at the same time opens up opportunities to build more ethical and transparent AI systems. It is crucial to implement appropriate practices and mechanisms at every stage of product development.
If you want to know more about how our Ethical AI & Behavior Framework can help your business adapt to new regulations and create Trustworthy AI, please contact us! We will be happy to talk and help you adapt to the upcoming changes.
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If this topic is relevant to you, feel free to contact us! We are happy to share our knowledge and experience so that your business can grow in accordance with the new regulations and the highest ethical standards.
