European Union lawmakers are set to give final approval to the 27-nation bloc's artificial intelligence law Wednesday, putting the world-leading rules on track to take effect later this year. The AI Act, which has been in the works for five years, is expected to act as a global signpost for other governments grappling with how to regulate the fast-developing technology. Lawmakers in the European Parliament are poised to vote in favor of the AI Act, with Romanian lawmaker Dragos Tudorache stating that it has nudged the future of AI in a human-centric direction.

The AI Act takes a risk-based approach to regulating AI systems, with low-risk applications facing lighter rules such as disclosing that they are powered by AI. High-risk uses, such as in medical devices or critical infrastructure, face tougher requirements like using high-quality data and providing clear information to users. Some AI uses are outright banned, including social scoring systems and certain types of predictive policing.

The law also addresses generative AI models, such as OpenAI's ChatGPT, requiring developers to provide detailed summaries of the data used to train the systems and follow EU copyright law. AI-generated deepfake content must be labeled as artificially manipulated, and there is extra scrutiny for the biggest and most powerful AI models that pose systemic risks.

The EU's regulations on AI are expected to influence other countries and global groupings, with the U.S., China, and other nations also working on their own AI legislation. The AI Act is set to officially become law by May or June, with provisions taking effect in stages. Each EU country will set up its own AI watchdog for enforcement, with fines of up to 35 million euros or 7% of a company's global revenue for violations of the rules. The EU aims to ensure that AI is developed and used in a way that benefits society while minimizing risks.