The Ministry of Industry and Trade has prepared a draft law on artificial intelligence.

AI is becoming an increasingly important part of people's lives and business. It brings new opportunities in industry, healthcare, transport, and public administration. At the same time, however, it raises questions related to security, personal data protection, and ethical use. That is why the European Union (EU) has adopted the first comprehensive legal framework for AI.

"In June, we took over responsibility for implementing the AI Act with a clear goal - to fully exploit the potential of AI as a tool for increasing the competitiveness of companies and supporting the Czech economy. We immediately began preparing a draft law that is only ten pages long and includes only what is truly necessary. This will enable the development of innovation while providing users with certainty and security," says Minister of Industry and Trade Lukáš Vlček, adding that the draft law is one of the Ministry of Industry and Trade's steps toward placing the Czech Republic among the top 10 EU countries in the field of AI.

The regulation sets out clear obligations for developers and operators of AI systems, particularly in areas where these technologies can have a significant impact on human lives, such as healthcare, transport, and public administration. It also includes requirements for transparency and explainability of algorithms so that it is clear how the systems work and on what basis they make decisions.

"In record time, we worked with the entire AI ecosystem to prepare a bill that does not introduce unnecessary bureaucracy but, on the contrary, supports small and medium-sized enterprises. For example, setting a possible lower limit for fines through regulatory sandboxes or, in the case of less serious violations, the possibility of issuing a warning instead of immediately initiating administrative proceedings" says Deputy Minister and Government Commissioner for AI Jan Kavalírek, adding: "Thanks to the intensive work on preparing the entire AI regulatory environment, Czechia is doing very well compared to other EU countries, which is crucial for both Czech companies and foreign investors."

The basic rules for the use of AI are laid down in a European regulation, while the adaptation law only regulates the necessary institutional, procedural, and sanctioning mechanisms, which the AI act entrusts to the member states to decide independently.

Supervision of compliance with the rules will be divided among several authorities: the Czech Telecommunication Office, which will become the single point of contact, the Czech National Bank, and the Office for Personal Data Protection. The Office for Technical Standardization will act as the notifying authority and will accredit conformity assessment bodies. The Public Defender of Rights will play an important role in the protection of human rights. At the same time, the Czech Republic is preparing to establish a national regulatory sandbox. This will provide companies and start-ups with a safe environment for testing new artificial intelligence applications and will enable them to verify their functioning before they are placed on the market. Furthermore, a suitable environment has been created for those interested in establishing a notified body, which will have to certify certain AI systems.

In preparing the draft, the MIT worked closely with the AI sector and consulted with professional associations, businesses, and academia. After the inter-ministerial comment procedure is completed, the ministry will submit the draft law to the government. The law is expected to come into force in 2026.

Further information on the AI Act is available on the European Commission website or on the MIT website.

All materials related to the draft law can be found at this link.