Artificial intelligence (AI) is a technology that is transforming every aspect of life from finance to transportation, health care and national security. It has already started to revolutionise the way we communicate, conduct research, analyse data and streamline labour processes. However, AI also requires understanding and regulation in order to address issues such as algorithmic bias, ethics, transparency and data access obstacles that will inevitably impact society, governance and the economy. To this end, the member states of the European Union endorsed the Artificial Intelligence Act in February 2024, a legal framework that aims to ensure that AI systems placed on the European market and used in the EU are safe and respect fundamental rights and European values. This is the first such agreement of its kind and may have implications for other countries currently working on similar regulations. This Forum explores some of the ways that AI is changing the status quo, the challenges of regulating this technology and the economic impact of the ongoing transition.