The European Union has formally approved the AI Act, marking the world’s first comprehensive set of rules governing artificial intelligence. The legislation adopts a risk-based approach, banning certain applications deemed to pose an unacceptable threat while imposing strict transparency requirements on high-impact generative models. Supporters of the measure, including digital rights groups, have praised the framework for prioritizing human rights and safety in the face of rapid technological advancement. However, several business associations and tech executives have cautioned that the administrative burden could hamper the continent's competitiveness in the global AI race. The law is expected to take effect in stages over the next two years, with other nations reportedly considering similar frameworks to address the ethical and economic implications of autonomous systems.