Hungary at the Forefront of Embracing the EU’s Artificial Intelligence Regulation

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Throughout the negotiations, Hungary consistently advocated for regulations that support European businesses and developments without unnecessarily increasing red tape, while providing adequate flexibility for member states.

The European Union’s Artificial Intelligence (AI) Regulation is on the brink of acceptance, with Hungary striving for a leading role, Gergely Fábián, State Secretary for Industrial Policy and Technology at the Ministry of National Economy (NGM) said according to a Wednesday press release.

The EU’s Artificial Intelligence Regulation (AI Act) concluded nearly three years of debate and preparation at the beginning of February. Throughout the negotiations, Hungary consistently advocated for regulations that support European businesses and developments without unnecessarily increasing bureaucracy, while providing adequate flexibility for member states, as stated in the press release. The rules outlined in the enacted regulation have primarily been developed along the lines of risk factors related to the use of artificial intelligence. The regulation will prohibit the most risky cases, including the deceptive and manipulative use of artificial intelligence and the general surveillance of individuals. However, the regulation will specifically provide for the targeted use of the technology, subject to strict rules and ensuring the possibility of human supervision or review.

According to the press release, typical examples of this include AI-supported banking services. In less risky cases, such as the use of a chatbot, basic information about the use of artificial intelligence will be sufficient according to the regulation. In the simplest cases, such as artificial intelligence integrated into a computer game, even this will not be necessary. Additionally,

the development of general-purpose language models, such as ChatGPT will be separately regulated.

Furthermore, beyond the central Brussels supervisory authority, the AI Regulation will also require the designation of national supervisory authorities. According to the government’s position, national authorities, including the Hungarian authority, must provide a testing environment for domestic businesses where they can test their AI developments in a live environment, thereby receiving substantial assistance before entering the market. The additional benefit of the testing environment is that it can highlight the need for legislative changes that can further reduce the bureaucratic burdens on businesses.

Regarding the regulation, Fábián emphasized that the digital economy already accounts for at least 25 per cent of total GDP, and the use of advanced technologies such as 5G, artificial intelligence, or Big Data has become crucial for economies. The government’s goal is for Hungary to be among the EU’s ten most digitally advanced countries by 2030, so the implementation of the regulation must be organized in a way that supports and assists Hungarian developments and businesses. The government aims to help the players in the Hungarian economy gain a competitive advantage and effectively utilize the opportunities offered by new technologies. This can contribute to the restoration of economic growth and the achievement of dynamic and sustainable economic growth. The State Secretary added that

in Hungary, the application of modern technologies is supported by initiatives such as the Neumann Technology Platform, the Artificial Intelligence Coalition, and the 5G coalition.

As the NGM’s goal is to put Hungary on the map in the field of artificial intelligence, one of the main topics of the Hungarian EU Presidency will be the preparation for the artificial intelligence regulation, for which a targeted series of professional programmes will be launched jointly with the Hungarian Chamber of Commerce and Industry, to provide businesses with adequate information about the practical, tangible opportunities offered by the use of artificial intelligence. In addition, this year will see a review of the Artificial Intelligence Strategy to exploit the economic opportunities inherent in artificial intelligence, as stated in the press release.


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European Parliament Votes on Regulating Artificial Intelligence
Competition in the Digital Era: GVH Investigates Artificial Intelligence’s Influence on Consumer Vulnerability

Sources: Hungarian Conservative/NGM

Throughout the negotiations, Hungary consistently advocated for regulations that support European businesses and developments without unnecessarily increasing red tape, while providing adequate flexibility for member states.

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