The Law and AI: EU AI Pact and AI Factories – The EU forges ahead as a leader in AI

The EU Artificial Intelligence (AI) Pact (“AI Pact”) is a voluntary initiative introduced by the European Commission to promote early adoption of the ethical and regulatory principles outlined in the EU’s AI Act. See our earlier blogs about the EU’s AI Act here and here. In addition, the EU has launched its AI Factories initiative. This aims to establish a network of “AI Factories” designed to support innovation in artificial intelligence by providing essential resources to AI startups, researchers, and industries across Europe. Both are closely aligned with the EU’s new European AI Office which is designed to play a key role in implementing the EU AI Act and promote the development and use of trustworthy AI.

Through initiatives such as the AI Pact, the development of AI Factories and the creation of the European AI Office, the EU is building a comprehensive AI framework which includes both legislative and collaborative initiatives and is establishing itself as a global leader in AI compliance setting high standards for AI safety, transparency, and ethics globally. This can also be seen by the traction that the Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law (“the AI Convention”) has recently received. The AI Convention is the first-ever international legally binding treaty in the field of AI and has been signed by countries such as United States, Canada, Japan, Australia and the UK. You can find our blog on it here.

The AI Pact

The EU AI Act came into force on 1 August 2024 and is expected to fully apply by 2026. The AI Pact was introduced by the European Commission as an initiative that seeks voluntary pledges from companies to help drive trustworthy and safe AI development and to help ensure future compliance with the EU AI Act. Over 100 companies from a range of sectors have signed the AI Pact. Among the notable recent additions are OpenAI, Google, Microsoft, and Amazon. A full list of signatories can be found here.

The AI Pact includes three core actions which participating companies are required to commit to. These actions are:

1. Establishing an AI governance strategy: Participating companies are asked to implement governance strategies for AI that foster responsible AI development and prepare for compliance with the EU AI Act. This includes building internal policies and oversight mechanisms around AI deployment and management​.
2. Mapping high-risk AI systems: Participating companies are encouraged to proactively identify AI systems that could be classified as high-risk under the AI Act. This involves assessing which AI applications in their operations might affect safety, health, or fundamental rights and taking appropriate steps to mitigate associated risk.
3. Promoting AI literacy and awareness: Participating companies must commit to enhancing AI awareness among their employees, which may include training programs and resources on ethical and responsible AI practices. This ensures that staff across different functions understand the implications of AI and contribute to maintaining transparency and ethical standards​

AI Factories

In addition to the AI Pact, the EU Commission has launched its AI Factories initiative, an initiative that was presented earlier this year as part of the EU Commission’s AI innovation package. The aim of this initiative is to establish a network of “AI Factories” designed to support innovation in artificial intelligence by providing essential resources to AI startups, researchers, and industries across Europe. These “factories” serve as a one-stop-shop where participants can access high-performance computing power, data, and expertise to create, test, and validate AI applications.

AI Factories reflect the EU’s commitment to responsible AI development. They are an integral part of the broader European AI strategy that seeks to promote ethical AI use in line with the EU AI Act by facilitating collaboration and innovation while maintaining high standards of transparency, accountability, and safety in AI research.

If you have any questions or would like to discuss any of the topics in this article, please contact Nick Phillips or Selina Clifford in our Intellectual Property team.

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