The digital transformation has driven the use of artificial intelligence (AI) in companies worldwide.
But with increasing use come new challenges – and one of the most important innovations is the EU AI Act.
The importance of the EU AI Act for your company
The EU AI Act, the world’s first comprehensive legislation to regulate AI, came into force on August 1, 2024.
What does this mean for your company?
How can you ensure that your AI applications are safe and compliant with the law?
This article provides you with a clear overview of the requirements of the EU AI Act, with a particular focus on SMEs.
You will learn how to use AI responsibly while minimizing legal risks.
Disclaimer: This is an overview and not legal advice. Before implementing specific steps, it may be useful to obtain individual legal advice.
What does this mean for your company?
How can you ensure that your AI applications are safe and compliant with the law?
This article provides you with a clear overview of the requirements of the EU AI Act, with a particular focus on SMEs.
You will learn how to use AI responsibly while minimizing legal risks.
Disclaimer: This is an overview and not legal advice. Before implementing specific steps, it may be useful to obtain individual legal advice.
Why the EU AI Act is more important than ever
The EU AI Act responds to the rapidly growing use of AI and the associated risks, because artificial intelligence holds potential, but also dangers for health, safety and fundamental rights.
The law aims to ensure that AI applications are used safely and in accordance with the fundamental values of the EU.
The law aims to ensure that AI applications are used safely and in accordance with the fundamental values of the EU.
This is of great importance especially for medium-sized companies:
They must ensure that their AI systems meet the new requirements in order to not only avoid legal consequences, but also to gain the trust of customers and partners.
What the EU AI Act means for your company
The basic principles of the EU AI Act
The EU AI Act aims to make AI technologies safe and trustworthy in the EU. The law divides AI systems into four risk categories, each of which places different requirements on transparency and documentation:
- Unacceptable risk: Prohibited AI systems such as social scoring or manipulative behavioral influence.
- High risk: AI systems that place comprehensive requirements on transparency, documentation and regular monitoring, e.g. when used in sensitive areas with significant impacts on people.
- Limited risk: AI systems with limited risk do not pose a high danger, but must meet transparency obligations and clearly communicate to users that they are interacting with an AI.
- Minimal risk: AI applications with low risk, for which less strict requirements apply. These include e.g. spam filters or spell checking.
What companies must do now to ensure compliance
The implementation of the AI Act requires companies to bring their AI systems into compliance with the new regulations.
The central requirements include:
The central requirements include:
- Risk management: Regular assessment and minimization of the risks associated with the use of AI.
- Documentation and transparency: Companies must provide detailed documentation containing information about AI development, training data and processes.
- Responsibilities and governance: A clear governance strategy and responsible bodies for dealing with AI must be defined.
- AI competence: Companies must ensure that employees who use AI are sufficiently trained and have the necessary knowledge to work responsibly with AI.
Focus on SMEs: Special challenges and opportunities
How companies with fewer resources can meet the AI Act
For small and medium-sized enterprises, compliance with the AI Act is a particular challenge.
Compared to large corporations, they often lack the resources to implement comprehensive compliance strategies. Nevertheless, SMEs are obliged to meet the requirements.
Compared to large corporations, they often lack the resources to implement comprehensive compliance strategies. Nevertheless, SMEs are obliged to meet the requirements.
How can they do that?
Even without the resources of large corporations, SMEs can successfully implement the AI Act by proceeding strategically and step by step.
In addition, the involvement of external consultants can create clarity and provide support with necessary steps, such as training employees.
In addition, the involvement of external consultants can create clarity and provide support with necessary steps, such as training employees.
Take advantage of these opportunities for further development
By addressing the regulatory requirements, you not only create a legally secure environment, but also strengthen the trust of your partners and customers in your AI applications.
This can not only help you avoid legal pitfalls, but also serve as a competitive advantage.
This can not only help you avoid legal pitfalls, but also serve as a competitive advantage.
How to successfully implement the EU AI Act: Best practices and recommendations for action
A strategy for your AI governance
The basis for compliance with the AI Act is a clear governance strategy.
You should define:
You should define:
- Who in the company is responsible for compliance with the AI requirements.
- Which processes for risk assessment and mitigation need to be introduced.
- How you ensure that your AI systems are transparent and comprehensible.
Training and awareness as key to success
It is not enough to just adapt the technology – your employees must also be prepared for the new requirements.
Training on the use and understanding of AI and legal compliance is therefore essential to ensure that all stakeholders understand and implement the requirements of the AI Act.
Training on the use and understanding of AI and legal compliance is therefore essential to ensure that all stakeholders understand and implement the requirements of the AI Act.
Risk management as an ongoing process
Implement continuous risk management that regularly assesses how your AI systems meet the requirements of the AI Act.
This not only helps to avoid legal problems, but also ensures that your AI is always up to date and secure.
This not only helps to avoid legal problems, but also ensures that your AI is always up to date and secure.
Conclusion: Your opportunities in accordance with the EU AI Act
The EU AI Act presents companies with new requirements, but also with new opportunities.
If you address the legal requirements now, you can not only avoid legal risks, but also strengthen your position as a trustworthy and innovative market participant.
Especially for SMEs, it is crucial to take the right measures and get support in order to successfully implement the new regulations.
Take this opportunity to ensure that your AI applications are both secure and future-proof.
If you address the legal requirements now, you can not only avoid legal risks, but also strengthen your position as a trustworthy and innovative market participant.
Especially for SMEs, it is crucial to take the right measures and get support in order to successfully implement the new regulations.
Take this opportunity to ensure that your AI applications are both secure and future-proof.
Start today to set the course for compliant and future-proof AI use, and contact us to discuss the next steps in your company.
Sources:
- European Commission – Digital Strategy: https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai
- Eur-Lex – EU AI Act Text: https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX:32024R1689
- EU AI Act Explorer: https://artificialintelligenceact.eu/ai-act-explorer/
