The new challenges of Artificial Intelligence legal framework in the European Union cyberspace. The galloping rise of Artificial Intelligence technologies has created a large variety of opportunities across all of industries and sectors, and also, it is going to reshape the European Union cyberspace. On the other hand, it has raised significant challenges in the context of legal framework, doctrine and jurisprudence, beginning with the concepts of accountability and liability, data privacy to cybersecurity. This paper analyzes and makes lex ferenda proposals for the suitable legal solutions according to these new challenges. The EU’s approach to AI legal framework will need to be more proactive, comprehensive, multi-faceted and balanced in the context of this dynamic landscape of evolving the cyberspace. One of the biggest challenges analyzed in this paper is the methods to establish a solid framework that ensures respecting human and fundamental rights according to the European and international treaties and conventions and also, to guarantee that the use of AI is safe, uphold the rule of law, remain ethical, and align with European principles and values. Finally, the innovation of this paper consists in how the EU regulators should adapt to the new paradigm of evolving Artificial Intelligence in the new shape of EU cyberspace.