The European Union's new Artificial Intelligence Regulation (AI Act) introduces new challenges and obligations for organizations that use artificial intelligence. The EU AI Act is the first regulation that focuses exclusively on the functioning and impact of artificial intelligence. The goal is to support innovation while simultaneously protecting people.
Artificial Intelligence’s rapid development transforms our lives – and our legal environment as well. It has become increasingly clear that without a common framework for regulating artificial intelligence, people’s rights may be violated, innovation may exert uncontrolled influence on social structures, market competition could become significantly distorted and distrust regarding technology could also increase.
Europe’s response to all of this is AI Act - a comprehensive, horizontal regulation about artificial intelligence.
AI everywhere - but what protects the people?
Waking up in the morning with the help of a smart watch, weather forecast from a digital assistant, personalized news feed and aimed content on social media platforms – all of these are controlled by artificial intelligence. All this, before we have even had a change to leave the house.
Artificial intelligence isn’t just a tool anymore, it has become a decision maker.
It offers huge opportunities, but also carries significant risks:
- What happens, if we get rejected from a job interview based on a decision made by AI?
- Who’s responsible, if a self-driving car makes a mistake?
- How can we ensure that AI systems are not biased or discriminatory?
These questions cannot be answered by technology alone - regulation is essential.
AI Act - Europe’s answer
The EU AI Act is the first regulation that focuses exclusively on the functioning and impact of artificial intelligence. The goal is to support innovation while simultaneously protecting people.
The new regulation guarantees that AI systems are:
- safe
- transparent
- traceable
- free of discrimination
- respect human rights
AI Act applies to all artificial intelligence that:
- operates within the EU
- is placed on the EU market
- or affects EU citizens - regardless of where it was developed.
AI Act imposes strict obligations to developers, deployer and users - whether they are private companies or public institutions.
Failure to comply with the AI law can have serious consequences: fines can be up to 30 million euros or 6% of global revenue - similar to GDPR.
What is the AI Act? Who could be impacted?
The European Union’s new artificial intelligence, the AI Act is the most comprehensive regulation to date, which is going to have a significant effect on the operation of organizations using AI. The regulation is completely mandatory in all member states.
The objective of the AI Act is to improve the functioning of the internal market by establishing unified legal framework for the development, placing on the market, commissioning, and use of artificial intelligence (AI) systems within the Union, in alignment with EU values.
Its aim is to promote the widespread adoption of human-centric and trustworthy AI, while ensuring a high level of protection of health, safety, and the fundamental rights established in the Charter of Fundamental Rights of the European Union. It also seeks to ensure protection against the harmful effects of AI systems and to support innovation.
The scope of the AI Regulation extends to all organizations that develop, distribute, deploy, or use AI systems within the European Union.
The regulatory framework defines 4 levels of risk for AI systems.
It prohibits all AI systems that clearly pose a threat to people’s safety, livelihoods, and rights - ranging from government-led social scoring to toys using voice assistance that encourage dangerous behaviour.
AI Act - is your organization ready?
The first key elements of the regulation already entered into force on February 2, 2025, so affected organizations must take action.
Key action points:
- Assess AI readiness: Where does the organization currently stand? What level of AI knowledge do employees possess?
- Launch targeted training programs: Not only for IT professionals, but also for decision-makers, HR teams, legal advisors, and compliance officers.
- Conduct risk classification: With a strong focus on identifying high-risk systems and preparing the required compliance documentation.
- Identify prohibited practices and review AI use: Audit data usage and AI algorithms to detect any prohibited or ethically questionable practices.
- Establishing human oversight mechanisms.
Do not wait until the last minute - get ready now!
The revolution of artificial intelligence isn’t the future - it’s the present. AI Act isn’t only a regulation: it can be a strategic advantage for those who adapt to it early.
RSM’s team of experts is ready to help you and your organization through every step of the preparation process - from ensuring regulatory compliance to developing employee knowledge.
Contact us to ensure your organization is using AI confidently, securely and legally!
