Observed Signal · Mar 13, 2024 · Regulation · Source: Trending Topics · Impact: 4/5 · Sentiment: Negative
EU Parliament Approves AI Act; High-Risk Rules Apply From 2027
The European Parliament approved the EU's AI Act with 523 votes in favour, 46 against and 49 abstentions. The regulation is expected to enter into force before the 2024 European elections. Its obligations will be phased in: bans on certain AI practices apply after six months (around end 2024), codes of conduct after nine months, general governance rules after 12 months, full applicability after 24 months, and high-risk system obligations after 36 months, i.e. around mid-2027. Banned uses include biometric categorisation based on sensitive traits, scraping facial images from the internet for recognition databases, emotion recognition at work or school, social scoring, predictive policing based solely on profiling, and manipulative or exploitative AI. Real-time remote biometric identification remains possible with limited geographic and temporal scope and judicial or administrative authorisation. Providers of general-purpose AI models such as GPT-4 and Gemini must comply with EU copyright rules, publish training-content summaries, and label deepfakes.
The EU AI Act is a landmark cross-sector AI regulation with phased obligations and bans, directly shaping how AI-driven advertising, profiling, and content tools can be deployed in Europe.
Track OpenAI Signals & Market Shifts in Real-Time
Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your free Explorer workspace to monitor these entities.
Key Takeaways & Evidence Grounding
- EU Parliament passed the AI Act with 523 votes in favour, 46 against, and 49 abstentions.
- High-risk AI system obligations apply 36 months after entry into force, around mid-2027.
- Bans on prohibited AI practices apply six months after entry into force, around end 2024.
- General-purpose AI models like GPT-4 and Gemini must meet transparency requirements, including EU copyright compliance and training-data summaries.
- Deepfakes must be clearly labelled under the AI Act.
Connected Companies & Entities
2 Entities mapped“The AI Act sets strict rules for providers of general-purpose AI systems (GPAI) such as GPT-4 by OpenAI....”
“The AI Act also mentions Gemini by Google as a general-purpose AI system subject to regulation....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
AI Stocks Sink as OpenAI Revenue Misses Reported Figure
Shares of Nvidia, Oracle, CoreWeave and other AI-related companies fell on Thursday after details emerged about OpenAI's revenue. OpenAI told investors it reached roughly $50 billion in annualized revenue at the end of September, lower than the widely reported $68 billion figure. A person familiar with the matter said the $68 billion figure included gross revenue from partners, making it more comparable to Anthropic. OpenAI also highlighted 77% total run rate growth in Q3 and 107% growth in enterprise business. The company is preparing for a potential IPO, with a valuation of $852 billion, and is in early talks to raise around $30 billion in new funding.
US Government Excludes Microsoft from Visa Program
The US government has barred Microsoft from participating in the permanent residency process for foreign workers with H-1B visas, accusing the company of abusing the program. Vice President JD Vance stated that Microsoft laid off 6,000 American employees last year while benefiting from 6,300 H-1B visa holders. The Department of Labor, led by Keith Sonderling, will not accept new permanent residency applications from Microsoft, as well as several consulting firms and Adobe. This action comes weeks before the midterm elections and reflects the Trump administration's broader criticism of the H-1B program, which it claims disadvantages American workers. Microsoft has not yet responded. The move could impact the tech industry's ability to retain skilled foreign talent.
US suspends Microsoft, Adobe from green card labor program
The U.S. Department of Labor announced the suspension of Microsoft and Adobe from its Permanent Labor Certification program, along with Cognizant, Infosys, Capgemini, Tata, Wipro, and HCL. Secretary Keith Sonderling cited active federal investigations for Microsoft and Adobe, and criticized the companies for allegedly taking jobs from American workers. Vice President JD Vance specifically accused Microsoft of replacing laid-off workers with H-1B visa holders. Microsoft responded by defending its hiring practices, stating that the majority of its U.S. employees are Americans and that most H-1B petitions are for existing employees. The announcement was made during a White House summit on H-1B fraud, coinciding with President Trump honoring several tech CEOs with the National Medal of Science.
Track Real-Time Market Signals & Shifts
Set up custom watchlists to receive automated, evidence-grounded executive digests whenever material signals or shifts occur across your tracked landscape.