The European Parliament vote is one of the last steps before the rules become law, which could act as a model for other places working on similar regulations.
A yearslong effort by Brussels to draw up guardrails for Al has taken on more urgency as rapid advances in chatbots like ChatGPT show the benefits the emerging technology can bring - and the new perils it poses.
Here's a look at the EU's Artificial Intelligence Act:
HOW DO THE RULES WORK?
The measure, first proposed in 2021, will govern any product or service that uses an artificial intelligence system. The act will classify Al systems according to four levels of risk, from minimal to unacceptable.
Riskier applications, such as for hiring or tech targeted to children, will face tougher requirements, including being more transparent and using accurate data.
It will be up to the EU's 27 member states to enforce the rules. Regulators could force companies to withdraw their apps from the market.
In extreme cases, violations could draw fines of up to 40 million euros ($43 million) or 7% of a company's annual global revenue, which in the case of tech companies like Google and Microsoft could amount to billions.
WHAT ARE THE RISKS?
One of the EU's main goals is to guard against any Al threats to health and safety and protect fundamental rights and values.
That means some Al uses are an absolute nono, such as "social scoring" systems that judge people based on their behavior.
Also forbidden is Al that exploits vulnerable people, including children, or uses subliminal manipulation that can result in harm, for example, an interactive talking toy that encourages dangerous behavior.
Predictive policing tools, which crunch data to forecast who will commit crimes, is also out.
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