The European Union (EU) is clamping down on artificial intelligence (AI), introducing new privacy compliance regulations to prevent harmful AI practices. These rules, having come into effect on 2nd February 2025, aim to stop AI systems that manipulate, exploit, or surveil people. The goal is not to hinder innovation but to ensure data privacy management remains a priority, thereby fostering ethical AI development that upholds fundamental rights.

Addressing Manipulative AI Practices

A key area of concern is AI systems that use subliminal techniques or deceptive tactics. These include chatbots spreading false information or AI-driven targeted advertising exploiting vulnerable groups such as children, the elderly, or those facing financial difficulties. The new laws also prohibit AI applications that fuel harmful social divisions, ensuring that data protection solutions prioritise ethical decision-making.

Regulating Social Scoring and Emotion Recognition

The EU regulations also limit the use of social scoring, where individuals are assessed over time based on their behaviour or personality. This could result in unfair treatment beyond the original context where the data was collected. Additionally, the use of emotion recognition software in workplaces and educational environments is now restricted, except in cases involving medical or safety reasons. The rules extend to AI systems categorising individuals based on biometric data, preventing the inference of sensitive information such as race or political beliefs.

Facial Recognition and Biometric Data Protections

Strict measures are also being enforced on facial recognition technologies, particularly concerning the untargeted scraping of images from the internet or CCTV for database creation. This shift moves away from mass surveillance and reaffirms a commitment to data governance solutions that protect personal privacy. 

The EU is also setting out stringent regulations for the use of real-time remote biometric identification (RBI) in public spaces. This technology may only be used for narrowly defined purposes, such as searching for victims of human trafficking, preventing imminent threats, or investigating serious criminal activity. The Regulations also ensure that cloud data compliance and financial data protection solutions must be adhered to, ensuring legal authorisation, human oversight, and the secure handling of collected data.

Implications for AI Providers and Deployers

These regulations impact AI-driven privacy solutions, affecting both providers (who design AI systems) and deployers (who implement them). Companies and public bodies must align with these legal frameworks to avoid hefty penalties. The European Commission will continue reviewing these guidelines to ensure they remain effective as technological and social landscapes evolve.

The Future of AI: Ethical and Responsible Innovation

The message from the EU is clear: while AI has the potential to transform society, its development must be responsible, ethical, and lawful. With the introduction of data retention policy management and third-party risk management measures, organisations must prioritise compliance and data security tools. The success of AI will depend on striking a balance between innovation and privacy, ensuring that the future of AI is built on trust, transparency, and human rights.