AI Act (European regulation on artificial intelligence)

The European regulation on artificial intelligence, known as the AI Act, is regulation (UE) 2024/1689, which entered into force on 1 August 2024 and applies in stages. It classifies AI systems into 4 levels: prohibited practices, high risk, limited risk and minimal risk. The obligations follow that classification: risk management, quality of training data, technical documentation, logging, transparency and human oversight for high risk systems. Creditworthiness assessment of natural persons is one of the high risk cases, which directly concerns credit scoring. Fraud detection calls for a case by case analysis, depending on the use and the effects of the decision.