26 major tech companies, including Amazon, Google, Microsoft, and IBM, have voluntarily signed the EU Commission’s AI Code of Practice on GPAI.

• Code is voluntary, signatories may benefit from enhanced legal certainty and a smoother transition into the binding requirements of the EU AI Act slated to take effect within the next two years.
• The code has three chapters i.e. transparency, copyright and Safety & Security
• About EU AI Act
  • EU AI Act is the world’s first comprehensive AI law.
  • The act takes a risk-based approach to regulation, applying different rules to AI according to the risk they pose.
  • It ensures clearer accountability for AI providers, with a direct impact on businesses using generative AI through their value chains and third-party risk management.
  • Much like the General Data Protection Regulation (GDPR), the EU AI Act is anticipated to become a global standard, aiming to ensure AI's positive rather than negative effects on lives worldwide.
  • Compliance: Penalties for non-compliance are significant—up to 7% of global turnover.
• Key concerns raised by companies
  • Code introduces legal uncertainties for model developers and extends beyond the scope of the forthcoming AI Act. 
  • Regulatory complexity and administrative burdens may impact Europe’s AI competitiveness