The European Union (EU) has become the first major global standard-setter in artificial intelligence (AI) after passing a historic set of regulations. The EU AI Act categorizes AI technology based on risk levels and will come into force in May 2025. Some EU member countries have previously favored self-regulation, but the EU recognizes the need to challenge the dominance of major tech players. The EU also introduced landmark competition legislation to curb anti-competitive practices by large tech companies. Concerns over the potential misuse of AI, such as deepfakes, have been growing, but some companies are taking self-regulatory measures. The EU's AI Act is seen as a potentially influential model for other countries.