The European Parliament has approved the EU AI Act, making it the first comprehensive AI regulation in the world. The legislation categorizes AI systems based on risk levels and imposes stringent requirements on high-risk applications. The regulation prohibits certain AI practices deemed unacceptable, such as social scoring systems and real-time facial recognition in public spaces with few exceptions. Companies violating the rules could face fines of up to 6% of their global annual revenue. Industry leaders have mixed reactions, with some praising the framework for providing clarity while others express concerns about potential innovation barriers.