I am not expert but there seems to be an overlap in the article between 'AI' and well ... just software, or signal processing: - AI that collects “real time” biometric data in public places for the purposes of law enforcement. - AI that creates — or expands — facial recognition databases by scraping images online or from security cameras. - AI that uses biometrics to infer a person’s characteristics - AI that collect…
Their deep meaning is "we don't want machines to make decisions". A key point for them has always been "explainability".
GDPR has a provision about "profiling" and "automated decision making" for key aspects of life. E.g. if you ask for a mortgage (pretty important life changing/affecting decision) and the bank rejects it you a) can ask them "why" and they MUST explain, in writing, and b) if the decision was made in a system that was fed your data (demographic & financial) you can request that a Human to repeat the 'calculations'.
Good luck having ChatGTP explaining.
They are trying to avoid having the dystopian nightmare of the (apologies - I don't mean to disrespect the dead, I mean to disrespect the industry) Insurance & Healthcare in the US, where a system gets to decide 'your claim is denied' against humans' (doctors in this case)(sometimes imperfect) consultations because one parameter writes "make X amount of profit above all else" (perhaps not coded with this precise parameter but somehow else).
Now, understanding the (personal) data collection and send to companies in the US (or other countries) that don't fall under the Adequacy Decisions [0] and combining that with the aforementioned (decision-making) risks, using LLMs in Production is 'very risky'.
Using Copilot for writing code is very much different because there the control of "converting the code to binaries, and moving said binaries to Prod env." (they used to call them Librarians back in the day...), so Human Intervention is required to do code review, code test, etc (just in case SkyNet wrote code to export the data 'back home' to OpenAI, xAI, or any other AI company it came from).
I haven't read the regulation lately/in its final text (I contributed and commented some when it was still being drafted), and/but I remember the discussions on the matter.
[0]: https://commission.europa.eu/law/law-topic/data-protection/i...
EDIT: ultimately we want humans to have the final word, not machines.