Businesses must prepare for upcoming EU AI Act compliance challenges

In August 2024, the European Union passed the EU AI Act, a regulation that will impact any organization that markets, uses, or benefits from AI systems within the EU, regardless of their location. The legislation aims to establish a rigorous framework for AI usage, recognizing both high-risk and unacceptable risk AI systems. The Act categorizes AI systems into these groups, with unacceptable risks such as social scoring being banned outright, while high-risk systems in areas like healthcare and critical infrastructure will require strict compliance measures. This includes pre-market assessments, continuous monitoring, and mandatory registration within an EU database. As the regulation approaches its full implementation date on August 2, 2026, businesses face significant compliance challenges that mirror those seen with the General Data Protection Regulation (GDPR). Non-compliance can result in severe fines amounting to €35 million or 7% of a company's global annual revenue, underscoring the urgency for organizations to adapt to these new requirements. It stresses the need for businesses to monitor their artificial intelligence systems, document their development and operations thoroughly, and ensure that they are equipped with the necessary transparency and human oversight mechanisms. Moreover, continuous compliance will be essential, necessitating businesses to develop governance frameworks designed to maintain adherence throughout the lifespan of their AI systems. Organizations must also provide training and resources for staff at all levels, from technical teams to executives, to foster a culture of compliance and understanding of the new regulations. Various compliance partners and governance platforms are emerging to support businesses, offering services like AI system inventories, monitoring tools, tailored assessments, and training workshops aimed at building essential AI literacy. The article concludes with advice for businesses to assess their exposure to the EU AI Act's implications before forming partnerships with compliance experts. The Future of Life non-profit organization has created a free compliance checker that can help organizations identify potential risk areas, facilitating a proactive approach to ensuring readiness ahead of the looming deadline. By addressing these areas early on, businesses can avoid penalties and contribute to responsible AI usage within the EU market.