Key Takeaways from the EU AI Act and steps to compliance
The Impact for businesses using AI
For businesses and their employees, the EU AI Act will influence everything from how AI tools are selected to how data is managed. With the growing use of generative AI (GenAI) in content creation, companies and their employees must now ensure that these tools comply with transparency requirements and do not produce harmful outputs.
Moreover, marketers need to be aware of the data governance aspects of the Act, ensuring that all AI-driven marketing efforts adhere to GDPR and other relevant regulations. This is particularly important for personalized marketing campaigns that rely heavily on customer data, for profiling in HR, medical and other sensitive applications.
Key Takeaways from the EU AI Act
Risk-Based Classification: The EU AI Act categorizes AI systems based on their potential impact on safety and fundamental rights.
There are four categories: unacceptable, high, medium, and low risk plus a special category for General Purpose AI (GP AI). Each category comes with its own set of requirements and obligations.
For example, AI used in marketing analytics might fall under medium risk, requiring transparency obligations, while AI systems involved in credit scoring (often used in customer finance offerings) or in HR profiling (used in recruiting and talent management) could be classified as high risk, necessitating stricter compliance measures.Transparency and Accountability: One of the core principles of the EU AI Act is transparency. AI systems, especially those categorized as high-risk, must be well-documented and transparent to users. This includes informing users when they are interacting with AI-generated content, a critical consideration for marketers using AI in customer interactions.
Penalties for Non-Compliance: The stakes are high. Non-compliance with the EU AI Act can lead to severe penalties, including fines of up to €30 million or 6% of a company’s total worldwide annual turnover. This underscores the importance of integrating compliance into your AI strategies from the outset.
Steps to Compliance: Practical steps businesses should take to align with the EU AI Act to implement the legal requirements
Analysis of the AI applications in use
Identification of applicable regulations and obligations, including risk classification of AI
Comprehensive AI compliance (including product safety, data protection, copyright, etc.)
Technical measures (where possible)
Organizational measures
AI strategy
Guidelines for the use of AI
Training and awareness for employees (see below)
Monitoring and auditing.
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Legal requirement: Ensure your staff’s AI competence with AI trainings
The AI Act introduces the concept of AI competence, defined as the skills, knowledge, and understanding needed to make informed decisions about AI systems. This includes being aware of the opportunities and risks associated with AI, as well as the potential harm these systems could cause. The regulation aims to equip everyone involved with the ability to use AI systems responsibly, fully aware of their rights and obligations.
Article 4 of the EU AI Act specifically requires providers and users of AI systems to take appropriate steps to ensure that their staff and other relevant individuals have a sufficient level of AI competence. The training should be tailored to the technical knowledge, experience, education, and specific roles of the employees involved.
AI competence should consider the context in which the AI systems are used and ensure that those interacting with or affected by AI are well-informed and prepared. In some cases, depending on the context, no training might be necessary.
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Conclusion: Preparing your business for compliance with the EU AI Act
The EU AI Act is a game-changer for businesses in Europe. As AI applications continue to evolve, staying informed and compliant with these new regulations will be critical for success. Whether you’re an AI enthusiast, IT/ tech professional, or an AI user for your company, this CheatSheet will help you stay ahead of the curve. Download it today to ensure your business is fully prepared for the future of AI in Europe.
Stay compliant, stay competitive, and lead the way in the new era of AI workflows and use cases in your team.
