Onur Candan
CEO
Palamar Teknoloji

The echoes of the newly enacted European Union Artificial Intelligence (AI) Act continue to be heard. So what does this law mean for Turkey? Onur Candan, Founder and CEO of Palamar Teknoloji, explained.

The AI Act, which the European Union enforced at the beginning of August, introduces significant regulations for all organizations operating within the EU or using EU citizens’ data. The law sets requirements for general-purpose AI systems, including transparency, cybersecurity, and compliance with intellectual property rights.

The EU AI Act aims to ensure that artificial intelligence technologies are used ethically, safely, and transparently. With key principles like respecting human rights, preventing discrimination, and keeping AI under human control, the law takes crucial steps to address the societal impacts of technology.

Companies violating the law could face fines of up to 35 million Euros or 7% of their global annual revenue. Many provisions of the law won’t take effect until 2026, with a transition period set at 36 months.

WILL THERE BE ANY EFFECTS ON TURKEY?

Onur Candan, Founder and CEO of Palamar Teknoloji, emphasized that the EU Artificial Intelligence Act will significantly impact Turkey, stating: “It is well known that EU regulations have global effects. For instance, the General Data Protection Regulation (GDPR) in 2016 led global tech giants to update their services. Similarly, the AI Act could be an important guide for governments and citizens by highlighting the use of AI in daily life.

As Turkey has commercial and economic relations with the EU, the adoption of the AI Act will also influence AI applications in Turkey.

The EU Artificial Intelligence Act will introduce regulations on the use of AI technologies, data protection and privacy, and algorithmic responsibility. Turkey may need to implement similar regulations and align itself with EU standards in these areas. Therefore, the new AI Act could have indirect effects in Turkey as well. Turkish companies will need to comply with these legal regulations if they wish to operate in the EU market or use EU citizens’ data. Furthermore, if EU laws are adapted to Turkey’s regulatory frameworks, local companies may also need to meet similar requirements.

The impact of the new AI Act will be strongly felt in Turkey, requiring local tech companies to prepare for new regulations. Additionally, the EU AI Act will affect entrepreneurs and tech companies in Turkey. Turkish companies aiming to enter the EU market will need to develop products and services compliant with the EU AI Act.”