EU introduces strict AI rules

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This is the Automated, your AI tour guide.

A warm welcome to the 231 folks who joined us yesterday.

Here’s what we got for you today:

  • ⚖️ EU introduces strict AI rules.

  • 🤯 McKinsey reveals AI could add up to $4.4 Trillion to the Global Economy

⚖️ EU Introduces Strict AI Rules.

The European Union (EU) is at the forefront of global efforts to regulate AI.

They've just passed a draft law called the A.I. Act, making it the first comprehensive set of rules for AI technology. 

The EU is dividing AI systems into different risk levels. AI systems in high-risk areas such as employment and education will face stringent requirements (such as transparency and accuracy in data usage).

That’s not all!

They're banning some AI applications altogether.

  • No predictive policing tools

  • No real-time remote facial recognition

  • and definitely no biometric identification in public.

Violations of these requirements may lead to fines of up to €30 million ($33 million) or 6% of a company's annual global revenue.

Don't believe me? see for yourself

Of course, not everyone is thrilled about these rules.

OpenAI CEO Sam Altman has expressed concerns that overregulation in the AI Act might prompt them to leave Europe.

However, the European Commissioner of Competition, Margrethe Vestager, emphasizes that AI should serve us not the other way around.

🤯 McKinsey Reveals AI Could Add up to $4.4 Trillion to the Global Economy!

McKinsey has come up with some mind-boggling numbers regarding GenAI's impact on the global economy.

According to the report GenAI has the potential to contribute between $2.6 trillion and $4.4 trillion annually to the global economy.

For context, that's like adding a whole new country with the size and productivity of the United Kingdom to our dear planet. (U.K. had a $3.1 trillion GDP in 2021).

This estimate represents a significant increase from previous projections and is attributed to the rapid adoption and potential use cases of GenAI tools by businesses.

To achieve this analysis, McKinsey examined 850 occupations and 2,100 work activities across 47 countries, representing over 80% of the global workforce.

Here are a few points from the report:

  • The report suggests that half of today's work activities could be automated between 2030 and 2060 (surprisingly, according to them, this doesn't necessarily result in a massive job loss, find out why here).

  • Four areas are set to benefit the most from GenAI. (Customer Operations, Marketing and sales, Software engineering, and R&D).

  • AI will act as a "catalyst" for economic growth.

There is so much packed into that report, you should read it. It's titled: The economic potential of Generative AI.

That's all we've got for you today.

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