Source: Financial Times

Financial Times reports that the European Union has unveiled a new AI regulation framework designed to promote innovation while maintaining strict ethical and safety standards. The revised plan aims to address industry concerns over excessive regulation while still protecting consumer rights and public safety.

The proposal introduces a tiered risk-based approach, where AI applications are classified based on their potential impact on society. High-risk AI systems will face stricter compliance requirements, while low-risk applications will have lighter regulations to encourage innovation.

EU officials emphasize that the new framework will ensure AI development aligns with European values, particularly regarding transparency, accountability, and data privacy. Legal experts believe the plan could serve as a global model for balanced AI governance that supports both ethical considerations and industry growth.