European Union officials have presented proposals to restrict the use of high-risk artificial intelligence, such as real-time face scanning, that could threaten the safety or rights of people, AP reported.

The European Commission's draft includes rules for the use of rapidly evolving technology in systems that filter out the study, work, or loan applicants. They also prohibit the use of artificial intelligence altogether in some cases deemed too risky, such as social rating systems that evaluate people based on their behavior and physical characteristics.

These ambitious proposals are the latest step by the EU to maintain its role as the global standard-bearer in technology regulation. EU officials say they are taking a risk-based approach trying to balance the need to protect rights such as data privacy with the need to encourage innovation.

With these rules, the EU is spearheading the development of new global regulations to ensure confidence in AI, said Margrethe Vestager, Vice President of the European Commission for the Digital Age. 

By setting standards, we can pave the way for ethical technology around the world and ensure that the EU remains competitive along the way, she noted.

The proposals also include a fundamental ban on controversial remote biometric identification, such as using real-time facial recognition to distinguish people from crowds in real-time, because there is no place for mass surveillance in our society, Vestager said.

However, there will be an exception only for narrowly defined law enforcement purposes, such as finding a missing child or wanted person or preventing a terrorist attack or threat.

The draft rules also apply to artificial intelligence applications that pose limited risk, such as chatbots, which must be flagged so people know they are interacting with a machine. Most AI applications will not be affected or subject to existing consumer protection regulations.

Violations can result in fines of up to € 30,000 or up to 6% of global annual income for companies.

The proposals have yet to be discussed by EU legislators and may be changed in a process that could take several years. They will apply to anyone who provides an artificial intelligence system in the EU or uses a system that affects people.

EU officials, trying to catch up with the Chinese and American tech industries, said the rules will help the industry grow by increasing confidence in artificial intelligence systems and bringing legal clarity to the companies that make up them.