The EU’s Artificial Intelligence Act (the AI Act) marks a pivotal step in regulating artificial intelligence (AI) by establishing a framework to ensure ethical AI use while safeguarding fundamental rights.

The AI Act, published in the Official Journal on 12 July 2024, and effective from 1 August 2024, introduces strict rules on the deployment and use of certain AI systems. This article provides a detailed and practical guide for businesses to navigate the AI Act, focusing on the obligations businesses will have pursuant to it to ensure AI literacy in their organisations, which may require the provision of training on AI.

Overview of AI Literacy Requirements

Under Article 4 of the AI Act, the following AI literacy measures are required:

1. Definition and Importance of AI Literacy:

• AI literacy is defined as the skills, knowledge, and understanding that enable providers, deployers, and affected persons to make informed decisions regarding AI systems. This includes awareness of opportunities, risks, and potential harms associated with AI.
• AI literacy is crucial for the ethical deployment of AI, ensuring that all stakeholders understand the implications of AI use and can manage associated risks effectively.

2. Measures to Ensure AI Literacy:

• Organisations must ensure their staff and other individuals involved in AI operations possess adequate AI literacy. This includes understanding the technical aspects of AI systems, proper application during development and deployment, and interpreting AI outputs correctly.

3. Supporting Structures:

• European Artificial Intelligence Board (AI Board): The AI Board will support the European Commission in promoting AI literacy, public awareness, and understanding of AI systems’ benefits, risks, safeguards, and related rights and obligations.
• Voluntary Codes of Conduct: The European Commission and Member States will facilitate the creation of voluntary codes of conduct to enhance AI literacy among developers, operators, and users of AI systems.

Key Dates:

• 12 July 2024: The EU will publish the AI Act in the Official Journal.
• 1 August 2024: The AI Act will become law.
• 2 February 2025: Rules on AI literacy requirements come into effect.

Enforcement and Penalties

While there are no specific fines for failing to ensure AI literacy, non-compliance with Article 4 will likely impact the extent of enforcement measures taken against organisations for other AI Act infringements. For example, supplying incorrect, incomplete, or misleading information to notified bodies or national authorities can result in fines up to €7,500,000 or 1% of the offender’s total worldwide annual turnover for the preceding financial year, whichever is higher. It is therefore important to bear this in mind when providing authorities with confirmation of the level of AI literacy within your organisation.

Steps to Compliance:

1. Assess Current AI Literacy Levels:

• Evaluate the current level of AI literacy within your organisation.
• Identify gaps in knowledge and understanding among staff involved in AI development, deployment, and operation.

2. Develop and Implement AI Literacy Programmes:

• Design training programmes tailored to different roles within the organisation. These should cover technical aspects of AI, ethical considerations, risk management, and compliance requirements.
• Ensure continuous learning opportunities to keep pace with technological advancements and regulatory changes.

3. Establish Internal Policies and Procedures:

• Develop policies that mandate regular AI literacy training for all relevant staff. Include these policies in the organisational compliance framework.
• Set up procedures for monitoring and assessing the effectiveness of AI literacy initiatives.

4. Collaborate with Industry and Regulatory Bodies:

• Engage with industry groups, regulatory bodies, and educational institutions to stay informed about best practices and new developments in AI literacy.

5. Documentation and Reporting:

• Maintain detailed records of AI training programmes and compliance measures.
• Be prepared to provide documentation to regulatory authorities if required.

The AI Act represents a comprehensive effort by the EU to regulate AI technologies and protect fundamental rights. Ensuring AI literacy is not just about avoiding penalties but also about fostering trust and promoting ethical AI practices. By taking proactive steps to assess, educate, and monitor AI literacy within your organisation, you can navigate these regulations effectively and maintain a competitive edge in a rapidly evolving technological landscape.

For further guidance and support on AI compliance, please contact Barry Scannell, Leo Moore, Rachel Hayes, or any member of the William Fry Technology Department.