EU ARTIFICIAL INTELLIGENCE ACT: SEEKING A BALANCE BETWEEN PROMOTING INNOVATION AND RECOGNIZING RISKS

Introduction. The dynamic development of artificial intelligence has led to a global digital transformation of societies and states, and increased concerns about security, bias, personal data, and intellectual property rights. Adopted by the European Parliament, EU Artificial Intelligence Act is the world's first comprehensive legal act establishing ethical principles and harmonised rules for the development, placement, putting into service and use of artificial intelligence systems in the EU. Undoubtedly, this law will have a significant impact on the use of artificial intelligence systems not only in the EU but also abroad, and can become the basis for a global standard for the ethical development and implementation of artificial intelligence, influencing the regulations of different countries. Purpose. The purpose of the issue is to conduct a thorough analysis of the provisions of the adopted and published EU Artificial Intelligence Law, as well as to highlight the existing opportunities and challenges for the development of artificial intelligence systems in the EU. Materials and methods. The research materials are 1) EU Artificial Intelligence Act; 2) the works of domestic and foreign scientists in the field of artificial intelligence, in particular regarding the draft or EU Artificial Intelligence Law as a whole, and the application of these provisions in certain areas of the state; 3) EU statistical and reporting materials. In the research process, the general scientific dialectical method the method of system analysis, classification and grouping methods, and the systemfunctional method were used. Results. The issue provides a thorough analysis of the provisions of the adopted and published EU Artificial Intelligence Law. It is concluded that the EU Artificial Intelligence Law introduces pan-European minimum requirements for artificial intelligence systems, based on using a risk-based approach to regulating artificial intelligence. This approach is aimed at protecting fundamental human rights, the rule of law, democracy, and the environment from the negative impact of artificial intelligence systems. Artificial intelligence systems are identified and analysed for four levels of risk: unacceptable risk, high risk, limited risk or special obligations for transparency, with minimal risk. Analysis of the EU Artificial Intelligence Law provided an opportunity to highlight challenges to the implementation of its provisions and opportunities for the development of artificial intelligence in the EU. The greatest challenges to the implementation include proper implementation and enforcement of the provisions; creation of a consistent and effective management system in this area throughout the continent; increase in operating costs and prices for artificial intelligence systems; disabling or restricting certain functions of the artificial intelligence system to ensure compliance, delaying the launch of new artificial intelligence products, wasting time on market entry, lagging European developers behind other developers from regions with less stringent rules for artificial intelligence systems, disagreements between Member States regarding the implementation of supervision and application of the provisions of this law within their jurisdictions. The capabilities of European developers of artificial intelligence systems include: creating a precedent for imitation, building the reputation of developers of reliable artificial intelligence systems; and ensuring fair competition in the region. The implementation of the EU Artificial Intelligence Law will depend on how effectively its provisions balance opportunities and challenges, as well as on how business entities, public authorities and civil society adapt to the new legal regulation.