On 2 August 2026, most provisions of the European Union Artificial Intelligence Act (EU AI Act) became applicable across the European Union. This is the world’s first comprehensive legislative framework regulating artificial intelligence. It establishes rules for those who develop, market, or use AI systems, including local self-government authorities.
The AI Act was adopted in 2024. It is based on a risk-based approach: the greater the potential impact of a technology on fundamental rights and society, the stricter the requirements governing its use.
For municipalities in EU Member States, this applies to AI solutions used in social protection, housing programmes, education, employment, infrastructure management, and the provision of administrative services.
For example, systems involved in the allocation of social benefits, the assessment of applicants for housing, or the preparation of administrative decisions may be classified as high-risk AI systems. In such cases, it is not sufficient simply to procure or deploy the service. Local authorities must ensure human oversight of its operation, maintain technical documentation and system logs, assess the potential impact on individuals’ fundamental rights, implement risk management measures, and ensure data quality.
At the same time, certain AI practices are prohibited in the EU. These include, in particular, social scoring of individuals, the use of emotion recognition systems in workplaces, and most cases of real-time biometric identification in publicly accessible spaces.
The Act also establishes transparency requirements. Individuals must be able to understand when they are interacting with a chatbot rather than a municipal employee, or when they receive content generated by artificial intelligence.
Local authorities have long moved beyond electronic queues or online applications. Communities use digital tools to analyse data, support internal operations, communicate with residents, and deliver public services. Generative AI has added capabilities such as drafting documents, processing large volumes of information, generating text, and providing initial responses to citizens’ enquiries.
Technology is advancing faster than the habit of assessing how it affects people. Therefore, for municipalities, the question is no longer simply whether AI should be used. More importantly, it is about where AI genuinely adds value, who is accountable for its decisions, and whether residents have the opportunity to understand and challenge those decisions.
Ukraine is not a member of the European Union; therefore, the EU AI Act does not apply to it directly. However, in the context of European integration, this legislation should be regarded as a benchmark. Ukrainian municipalities developing digital services can already incorporate clear rules for the use of AI, safeguards for citizens’ rights, and transparency into their work.
Source: https://decentralization.ua
