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Early prep could give businesses competitive edge

Simon Osuji by Simon Osuji
October 22, 2024
in Artificial Intelligence
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Early prep could give businesses competitive edge
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The EU AI Act is set to fully take effect in August 2026, but some provisions are coming into force even earlier.

The legislation establishes a first-of-its-kind regulatory framework for AI systems, employing a risk-based approach that categorises AI applications based on their potential impact on safety, human rights, and societal wellbeing.

“Some systems are banned entirely, while systems deemed ‘high-risk’ are subject to stricter requirements and assessments before deployment,” explains the DPO Centre, a data protection consultancy.

Similar to GDPR, the Act’s extra-territorial reach means it applies to any organisation marketing, deploying, or using AI systems within the EU, regardless of where the system is developed. Businesses will be classified primarily as either ‘Providers’ or ‘Deployers,’ with additional categories for ‘Distributors,’ ‘Importers,’ ‘Product Manufacturers,’ and ‘Authorised Representatives.’

For organisations developing or deploying AI systems, particularly those classified as high-risk, compliance preparation promises to be complex. However, experts suggest viewing this as an opportunity rather than a burden.

“By embracing compliance as a catalyst for more transparent AI usage, businesses can turn regulatory demands into a competitive advantage,” notes the DPO Centre.

Key preparation strategies include comprehensive staff training, establishing robust corporate governance, and implementing strong cybersecurity measures. The legislation’s requirements often overlap with existing GDPR frameworks, particularly regarding transparency and accountability.

Organisations must also adhere to ethical AI principles and maintain clear documentation of their systems’ functionality, limitations, and intended use. The EU is currently developing specific codes of practice and templates to assist with compliance obligations.

For businesses uncertain about their obligations, experts recommend seeking professional guidance early. Tools like the EU AI Act Compliance Checker can help organisations verify their systems’ alignment with regulatory requirements.

Rather than viewing compliance as merely a regulatory burden, forward-thinking organisations should view the EU’s AI Act as an opportunity to demonstrate commitment to responsible AI development and build greater trust with their customers.

See also: AI governance gap: 95% of firms haven’t implemented frameworks

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

Tags: ai, ai act, artificial intelligence, eu, europe, european union, law, legal, Legislation, regulation



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