The European Union’s AI Act, set to be enforced in 2025, is set to transform how businesses approach artificial intelligence. Designed to regulate AI development and deployment, the Act aims to ensure ethical, safe, and transparent AI usage. However, many organisations still struggle with compliance.
Compliance Challenges: Testing Major AI Models
A recent compliance tool, developed by LatticeFlow AI in collaboration with ETH Zurich and INSAIT, tested major AI models against the Act’s requirements. The results revealed significant gaps. Anthropic’s “Claude 3 Opus” achieved a strong compliance score of 0.89, but models from Meta and OpenAI showed weaknesses in areas like bias and cybersecurity (Reuters). This highlights the challenge companies face in ensuring their AI systems meet regulatory expectations.
Proactive Compliance Measures: A Strategic Imperative
Forrester predicted that by the end of 2024, at least half of large European companies would have invested in AI compliance measures to prepare for enforcement (Forrester). This proactive approach was and is still necessary, given the potential penalties for non-compliance. Companies violating the AI Act could face fines of up to €35 million or 7% of their global annual turnover (Reuters).
Strategic Advantages of Early Compliance
Beyond avoiding financial penalties, compliance offers strategic advantages. Companies that prioritise AI governance and security now will be better positioned to build customer trust and attract investment. According to the Adecco Group, 61% of business leaders see AI as a game-changer for their industry, meaning those who ensure compliance early will gain a competitive edge.
The Crucial Role of Data Security
Data security plays a crucial role in compliance. High-risk AI systems must be trained on high-quality, unbiased datasets and adhere to strict privacy standards, such as anonymisation and encryption. Security measures, including robust access controls and real-time monitoring, are essential to prevent cyber threats that could compromise AI outputs.
Ethical AI: Balancing Regulation and Competitiveness
The shift towards ethical AI is not just about regulation—it’s also about market competitiveness. AI systems that demonstrate transparency and fairness are more likely to be trusted by customers, investors, and regulators alike. As AI adoption accelerates, companies that integrate strong compliance measures now will be best equipped to navigate the evolving landscape.
Act Now: Building Trust and Gaining Competitive Edge
With the EU AI Act deadline approaching, businesses that act now will be in the strongest position to succeed. Compliance isn’t just about avoiding penalties—it’s about building trust, protecting sensitive data, and gaining a competitive edge in the AI-driven economy. In Part 2 of this blog series, we’ll dive deeper into how organisations can implement effective compliance strategies, the role of strong data governance, and how solutions like Protegrity help businesses navigate these challenges seamlessly.
Want to Dive Deeper?
Download the full EU AI Act compliance guide. Our comprehensive guide breaks down everything you need to know—from risk classification and data security to actionable compliance strategies.