European Union member states and lawmakers have clinched a deal on how to draft "historic" rules regulating artificial intelligence models such as ChatGPT -- after 36 hours of negotiations.

Meeting in Brussels, negotiators nailed down curbs on how AI can be used in Europe, which they said would not hurt innovation in the sector nor the prospects for future European AI champions.

"Historic! With the political deal on the AI Act sealed today, the EU becomes the first continent to set clear rules for the use of AI," declared the EU's internal market commissioner, Thierry Breton.

"The AI Act is much more than a rulebook - it's a launchpad for EU startups and researchers to lead the global race for trustworthy AI," he added.

The "AI Act" has been rushed through the European Union's legislative process this year after the chatbot ChatGPT, a mass-market gateway to generative AI, exploded onto the scene late 2022.

Although ChatGPT's ability to create articulate essays and poems was a dizzying display of AI's rapid advances, critics worry about how the technology can be misused.

The law will still need to be formally approved by member states and the parliament, but Friday's political agreement was seen as the last serious hurdle (AFP)