What are the main goals and scope of the EU AI Act?

The main goals of the EU AI Act are to improve the functioning of the internal market by establishing a uniform legal framework for the development, placing on the market, putting into service, and use of AI systems. Specifically, the Act aims to:

• -Promote the uptake of human-centric and trustworthy AI across the European Union.
• -Ensure a high level of protection for health, safety, and fundamental rights (such as democracy, the rule of law, and environmental protection) against the harmful effects of AI.
• -Support innovation while ensuring the free, cross-border movement of AI-based goods and services.

The scope of the EU AI Act is broad and has an extraterritorial reach, meaning it applies to entities both inside and outside of the EU depending on where the AI system is used or where its outputs are felt. Under the Act, obligations, risk classifications, and roles attach to actual, real-world deployments of AI - how it is used in practice and for what purpose - rather than just abstract AI models in isolation.

Who does the Act apply to?

The Act specifically applies to:

• -Providers placing AI systems or general-purpose AI models on the Union market or putting them into service, regardless of whether they are located within the EU or in a third country.
• -Deployers of AI systems who are established or located within the EU.
• -Providers and deployers located in a third country, as long as the output produced by the AI system is intended to be used in the Union.
• -Importers, distributors, and product manufacturers placing AI systems on the EU market under their own name or trademark.
• -Authorised representatives of providers not established in the Union.
• -Affected persons who are located in the Union.

Exclusions from the scope

The EU AI Act explicitly excludes certain uses and systems from its regulatory framework:

• -Military, defence, and national security: AI systems placed on the market, put into service, or used exclusively for military, defence, or national security purposes are exempt, regardless of whether the entity carrying out those activities is public or private.
• -Scientific research and development: AI systems and models specifically developed and put into service for the sole purpose of scientific R&D are excluded to respect the freedom of science and avoid undermining innovation.
• -Pre-market R&D: The Act does not apply to research, testing, or development activities regarding AI systems prior to them being placed on the market or put into service (though testing in "real-world conditions" is not exempt).
• -Personal use: Deployers who are natural persons using AI systems for purely personal, non-professional activities are exempt.
• -Open-source software: The Act generally does not apply to AI systems released under free and open-source licenses, unless those systems are classified as high-risk, fall under prohibited AI practices, or trigger specific transparency rules.