In the coming months, the European Union will adopt the first comprehensive regulatory framework on artificial intelligence in the world - the Artificial Intelligence Act. The Act will ensure the harnessing of the benefits of new technologies in line with the values, fundamental rights, and principles of the Union. The Thesis provides an overview of the technical developments of artificial intelligence through practical examples. In parallel with the technical aspect, the Thesis tracks the progress of regulatory and political initiatives that have shaped the current proposal of the Artificial Intelligence Act. The proposed regulatory framework on artificial intelligence is thoroughly examined in the Thesis, encompassing the scope of the Act, the definition of artificial intelligence, a risk-based approach, and the implementation plan of the Act. The author also raises questions about the interrelation between the Act and existing Union regulations, especially those concerning personal data protection; the different impact legal requirements of the Act pose for different participants within the value chain; and the dilemma associated with the proposed definition of artificial intelligence, among other issues. The Thesis recognizes the transformative impact of artificial intelligence on life and the global economy, emphasizing the exceptional importance of a firm regulatory framework on artificial intelligence that will shape our future.