The European Parliament approved the landmark artificial intelligence rules of the EU, also known as the EU AI Act. This has cleared a major obstacle for the first formal regulation on AI to be made law in the West.

AI is a major battleground for the global tech industry, as companies vie to be the first ones to develop the technology. This includes generative AI which can create new content based on user input. These rules are the world’s first comprehensive AI regulations.

The capabilities of generative AI, from producing code to music lyrics, have amazed academics, entrepreneurs, and even students. It has led to concerns about job displacement, bias, and misinformation.

In a crucial vote on Wednesday, the Parliament passed the AI Act by 499 votes to 28, with 93 abstentions. This regulation is still a long way from becoming law but is likely to become one of the world’s first formal rules on the technology.

Members of the European Parliament agreed to tighten restrictions on generative AI software like ChatGPT. Before releasing their products, developers of generative AI will have to submit them for review.

The Parliament has also decided to maintain its ban on controversial “social-scoring” systems and real-time biometric systems.

Human rights activists expressed their concern about an attempt by the European People’s Party (EPP) to soften the ban. The lawmakers pushed ahead and agreed to ban biometric surveillance in all public places.

Microsoft’s generative AI model, for example, is affected by the laws.

OpenAI, Google and ChatGPT are backed by OpenAI

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Jens-Henrik Jeppesen is the senior director of Public Policy at Workday. He said that the AI Act was designed to “build safeguards for the development and usage of these technologies in order to ensure we create an environment which encourages innovation so society can benefit.”

After the vote, he said to CNBC: “I think those are the right objectives.”

Next, the EU institutions such as its executive body and member states will begin to negotiate.

Thomas Dohmke, CEO of Github, called earlier in the day on European regulators, who were pushing ahead with AI rules, to listen to private sector.

Dohmke said to CNBC’s Arjun Kharral that “we encourage the European Union to move very quickly and to listen to those who built the technology. Not only in the commercial sector, but also in the universities and open-source communities.”

The move comes at a time when countries all over the world are looking for rules and standards to govern AI.

Rishi Sunak, the U.K. prime minister, made an ambitious pitch on Monday to make the U.K. “the geographical home” for AI safety regulations. The government also plans to host a global summit for AI safety in the latter part of this year.