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EU member states prepare for multi-authority oversight under AI Act

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By Noah Newsroom

Thursday, 2 January 2025 9:04AM UTC

As the EU AI Act implementation approaches, member states must designate multiple supervisory authorities, allowing tailored oversight for various sectors.

As the European Union moves towards the implementation of the EU AI Act, member states are faced with the task of designating supervisory authorities (SAs) by August 2025. This development marks a significant step in regulating artificial intelligence across various sectors. Unlike the General Data Protection Regulation (GDPR), which typically allows for a single supervising authority per country, the EU AI Act permits nations to appoint multiple SAs. This flexibility opens the door for tailored oversight that aligns with the unique challenges and needs of various industries.

One notable example is the Netherlands, which has already taken concrete steps in this direction. The country has appointed its Authority for Financial Markets and the National Bank to supervise AI applications within the financial services sector. Additionally, the Human Environment and Transport Inspectorate has been designated to oversee AI in critical infrastructure matters. All other supervisory responsibilities will be managed by the country's data protection authority.

The need for multiple SAs reflects a broader aim to address the complexities associated with AI technology in specialised fields, including healthcare and finance. As the landscape of AI regulation continues to evolve, countries are expected to follow the Netherlands' lead in appointing distinct authorities according to sector-specific requirements. In this context, it is anticipated that various EU member states will opt for a similar fragmented supervisory structure.

The JD Supra is reporting that such a diverse landscape of supervisory bodies will necessitate increased vigilance from organisations affected by the EU AI Act. Companies will need to stay informed about the differing regulations and guidance provided by their respective SAs. This requirement is particularly crucial in the early stages of the Act's implementation, as many critical concepts related to AI governance are still being established. As businesses adjust to this new regulatory environment, the potential challenges and implications of navigating principles set forth by multiple authorities will become a focal point in the burgeoning field of AI automation.

Source: Noah Wire Services

More on this

https://www.whitecase.com/insight-our-thinking/ai-watch-global-regulatory-tracker-european-union - This link corroborates the establishment of multiple supervisory authorities by EU member states, including notifying and market surveillance authorities, as part of the EU AI Act implementation.
https://www.lw.com/admin/upload/SiteAttachments/EU-AI-Act-Navigating-a-Brave-New-World.pdf - This document explains the double-layered enforcement mechanism of the EU AI Act, involving both EU and member state authorities, and the flexibility in designating multiple authorities.
https://artificialintelligenceact.eu/national-implementation-plans/ - This link provides an overview of the national authorities to be designated under the AI Act, including market surveillance authorities and national public authorities, highlighting the discretion given to member states.
https://www.whitecase.com/insight-our-thinking/ai-watch-global-regulatory-tracker-european-union - This source details the specific roles of market surveillance and notifying authorities in enforcing the EU AI Act, reflecting the sector-specific oversight needs.
https://www.lw.com/admin/upload/SiteAttachments/EU-AI-Act-Navigating-a-Brave-New-World.pdf - This document discusses the need for sector-specific regulation, such as in finance and healthcare, and the role of various authorities in addressing these complexities.
https://artificialintelligenceact.eu/national-implementation-plans/ - This link provides examples of how different member states, like Spain and Finland, are designating authorities in a way that aligns with their unique industrial needs.
https://www.whitecase.com/insight-our-thinking/ai-watch-global-regulatory-tracker-european-union - This source emphasizes the importance of national competent authorities having adequate resources to fulfill their tasks under the EU AI Act, reflecting the need for vigilance from affected organisations.
https://www.lw.com/admin/upload/SiteAttachments/EU-AI-Act-Navigating-a-Brave-New-World.pdf - This document highlights the ongoing development of AI governance principles and the role of various authorities in guiding and enforcing these principles.
https://artificialintelligenceact.eu/national-implementation-plans/ - This link discusses the necessity for organisations to stay informed about the differing regulations and guidance provided by their respective supervisory authorities.
https://www.whitecase.com/insight-our-thinking/ai-watch-global-regulatory-tracker-european-union - This source outlines the enforcement powers of market surveillance authorities, including reporting to the Commission and national competition authorities, which is crucial in the early stages of the Act's implementation.
https://www.jdsupra.com/legalnews/strengthened-ai-oversight-in-the-4413708/ - Please view link - unable to able to access data

EU AI Act
supervisory authorities
artificial intelligence