This report features in the EIT Digital policy perspective report series and is the result of a combined effort from five EIT KICs (EIT Manufacturing, EIT Urban Mobility, EIT Health, EIT Climate-KIC, and EIT Digital as coordinator). The report provides business and policy decision makers with a scenario-based impact assessment instrument. The scenarios off-set generic across the board application of policies and regulation against domain specific policies and regulation; and on the other hand, the level of regulation varying from soft to firm.

Next to the generic concerns and opportunities shared by all application domains, the report also identifies the key concerns and opportunities regarding AI in the domains of manufacturing, urban mobility, health, and climate and energy. This together with the core policy levels available to mitigate the concerns and embark on the opportunities.

Next to providing a pragmatic instrument for AI policy development, the main recom- mendations are:

• To ensure effective policy in the area of AI it is necessary to take context (sectors of application) into account.

• Policies regarding application of AI on personal data should be allowed to differ from policies regarding application of AI on machine data, especially in certain application sec- tors.

• General regulation or policy measures can be considered in relation to algorithm trans- parency and explainability.

• Regulation should be adaptable and flexible, whilst minimising and mitigating risks and ensuring human rights and European values.