The EU AI Act, effective from August 1, 2024, is the world’s first comprehensive AI regulation. It applies to businesses that build, sell, or use AI systems impacting the EU. Non-compliance could mean fines of up to €35 million or 7% of global revenue. Here's what you need to know:
Key Points:
- Who’s Affected? Any company using AI that interacts with EU customers or operates in the EU.
- Risk-Based Rules: AI systems are categorized by risk:
- High-Risk: Requires audits, strict oversight, and detailed documentation.
- Limited-Risk: Transparency required; users must know they’re interacting with AI.
- Minimal-Risk: Only basic compliance needed.
- Penalties: Severe fines and reputational damage for violations.
What You Should Do:
- Create an AI Inventory: List every AI system used, its purpose, data usage, and impact.
- Classify Risk Levels: Identify high-risk systems and implement stricter controls.
- Set Up Compliance Processes: Build a governance team and ensure transparency.
- Use Compliance Tools: Platforms like Diligent or PwC can simplify risk assessments and monitoring.
Deadlines to Remember:
- February 2, 2025: Remove prohibited AI systems (e.g., social scoring).
- August 2, 2025: Ensure compliance for general-purpose AI.
- August 2, 2026: Full compliance required.
Take action now to avoid penalties and ensure your AI operations align with EU regulations.
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Identifying and Categorizing AI Systems
Want to get your AI systems ready for the EU AI Act? It all starts with a simple but critical step: knowing what AI you're using and understanding its risk level. Here's how to get started.
How to Create an AI Inventory
First things first: you need to list every AI tool your company uses. This isn't a one-person job - you'll need a team that includes folks from legal, IT, HR, and data privacy. Software like AIInventory Pro or ComplianceTracker can make this process easier.
Here's what you should track for each AI system:
| Component | What to Document | Why It Matters |
|---|---|---|
| Function | Core purpose and uses | Helps determine risks and rules to follow |
| Data Usage | What data it handles | Shows what privacy rules apply |
| Team | Who owns and runs it | Makes clear who's responsible |
| Impact Area | What parts of business it affects | Helps figure out risk level |
Classifying AI Risks Under the EU AI Act
"The EU AI Act represents a significant regulatory milestone to ensure AI systems are safe, transparent, and respect fundamental rights." - Keith Fenner, Senior Vice President at Diligent
If you're using high-risk AI (think healthcare or infrastructure), you'll need to:
- Check system performance regularly
- Make sure your training data is top-notch
- Keep detailed records of how everything works
- Have humans watching over the AI
For AI systems with lower risks, you mainly need to tell users when they're interacting with AI. The lowest-risk systems just need basic tracking and documentation.
Need help sorting this out? Diligent's AI Act Toolkits can help you figure out your AI risk levels and set up the right compliance steps, especially if you're juggling multiple AI tools.
Setting Up a Compliance Plan
After identifying and categorizing your AI systems, you'll need a structured plan to meet EU AI Act requirements.
Creating Internal Compliance Processes
Start by building your AI governance team. You'll need people who know both the technical side of AI and the legal requirements. Include team members from legal, IT, data privacy, and key business departments.
"The EU AI Act represents a significant shift in how we approach AI governance. Companies need to establish clear accountability structures and processes to ensure compliance", says Keith Fenner, Senior Vice President at Diligent.
Your compliance framework needs these core elements:
| Area | Key Requirements | Implementation Steps |
|---|---|---|
| Governance & Documentation | Clear roles, responsibilities, system records | Set up oversight officers, define reporting lines, maintain central docs |
| Risk Management | Regular checks | Set up tracking tools and review steps |
Making AI Systems Transparent and Allowing Human Oversight
Your AI systems need to be open to human review and control. Put systems in place to:
- Tell users when they're interacting with AI
- Review AI decisions regularly
- Check and maintain data quality
Performing Regular Risk Checks and Audits
Think of risk checks like regular health check-ups for your AI systems. They help spot problems before they become serious issues.
Keep track of:
- How well your systems perform
- Data quality and bias concerns
- What users say about the system
- Whether you're following the latest rules
Tools like AI RiskManager or AuditPro can help automate these checks and alert you when something needs attention. These platforms make it easier to stay on top of AI governance and monitoring requirements.
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Tools and Platforms to Help with Compliance
Let's look at some practical tools that can help you meet the EU AI Act requirements without getting lost in red tape.
Eyer.ai: AI Monitoring Made Simple
Eyer.ai offers a no-code platform that makes AI monitoring straightforward. The platform connects with popular tools like Telegraf, Prometheus, and Open Telemetry to spot issues before they become problems. It watches your AI systems around the clock, helping you catch and fix potential compliance issues early.
Platforms for AI Governance
Two major players stand out in the AI compliance space. Here's how they stack up:
| Feature | Diligent AI Act Toolkit | PwC AI Compliance Tool |
|---|---|---|
| Risk Assessment | AI Discovery and Classification | Automated questionnaires |
| Documentation | Centralized compliance tracking | Project-specific documentation |
| Integration | Global ethical frameworks | Technical and business modules |
| Support | Legal and technical guidance | Cross-functional collaboration |
Here's what Keith Fenner, Senior Vice President at Diligent, has to say about it:
"The EU's AI Act represents a significant regulatory milestone to ensure AI systems are safe, transparent, and respect fundamental rights. We're thrilled to offer a solution that helps customers identify and map regulatory obligations, implement best practice controls, and govern AI responsibly."
Compliance Kits for the EU AI Act
PwC's AI Compliance Tool helps companies stay on top of their regulatory requirements. It handles everything from initial risk checks to ongoing system monitoring.
These tools do four key things:
- Help you figure out how risky your AI systems are
- Keep track of all your compliance paperwork
- Watch your AI systems for any issues
- Keep you up to date as rules change
When picking your compliance tools, look for ones that fit well with how your company already works. The best tool for you should grow with your AI projects and give you access to both legal and tech experts - especially if you're working with high-risk AI systems.
Conclusion: Steps to Get Ready for the EU AI Act
The stakes are high - companies face fines up to €35 million or 7% of annual turnover for major violations. Getting ready now isn't just about following rules - it's about keeping your business running smoothly.
Actions to Start Now
First things first: Take stock of your AI systems. Make a complete list and figure out the risk level for each one. This helps you know which systems need your attention right away. The compliance tools we discussed earlier can help make this process easier.
Here's the timeline you need to know: By February 2, 2025, you'll need to deal with any AI applications that are flat-out banned - things like social scoring systems or AI that manipulates people. For general-purpose AI systems, you've got until August 2, 2025. This gives you time to tackle the most pressing issues first.
Your next steps should include:
- Using compliance tools to set up processes that work for your AI systems
- Getting help from legal and technical experts for required high-risk assessments
- Checking and updating your systems regularly to stay on track
Preparing for Future Changes
The EU AI Act isn't alone - it's part of a bigger picture that includes other regulations like the Digital Services Act and Canadian AIDA. Here are the key dates to mark on your calendar:
| Deadline | Requirement | Action Needed |
|---|---|---|
| Feb 2, 2025 | Prohibited AI Applications | Remove or modify non-compliant systems |
| Aug 2, 2025 | General-Purpose AI | Implement monitoring and documentation |
| Aug 2, 2026 | Full Compliance | Complete all compliance measures |
FAQs
What are the risk assessments for the EU AI Act?
The EU AI Act uses a clear-cut system to classify AI based on how much risk it poses. This classification determines what companies need to do to follow the rules.
Here's how the EU AI Act breaks down the different risk levels:
| Risk Level | What It Means | What You Need to Do |
|---|---|---|
| Unacceptable | Systems like government social scoring and AI toys that can harm kids - these are OFF LIMITS | You can't use these at all |
| High | Think medical AI systems and police algorithms - stuff that could seriously impact people's lives | You'll need strict oversight and regular checks |
| Limited | Your everyday AI like chatbots and virtual assistants | Just be upfront about what they do |
| Minimal | Basic stuff like spam filters and gaming AI | Keep basic records |
If you're working with high-risk AI, you'll need to keep a close eye on things. That means setting up monitoring systems and keeping detailed records of how your AI works.
To help with this, companies like Diligent and PwC offer platforms that make it easier to check if you're following the rules. These tools help you evaluate your AI systems and keep all your paperwork in order.
