Your Guide to Compliance and Responsible AI
Artificial intelligence (AI) is rapidly transforming businesses and our digital lives, which is why the EU AI Act is so needed.
As with all great things, we turn to the Spider-man universe’s best-known advice: “With great power comes great responsibility.” Stan Lee
The EU AI Act is a landmark piece of legislation that will significantly impact how companies develop and use AI. The Act, the first of its kind globally, came into play on 1 August 2024 and will be effective as of 2 August 2026.
It sets out clear rules for AI systems and implementation. Will your business be ready?
The EU’s Artificial Intelligence Law
The European Union’s Artificial Intelligence Law creates a new legal landscape for businesses. This isn’t just about technical compliance but legal and ethical considerations.
The Act aims to protect fundamental rights, promote safety, and foster trust in AI.
Understanding the EU AI Act
The core of the EU AI Act is a risk-based approach. This means that AI systems are categorised based on their risk level.
There are four main categories:
Unacceptable Risk
These AI systems are banned outright. Examples include:
- AI systems that manipulate human behaviour to circumvent their free will.
- Real-time remote biometric identification systems in publicly accessible spaces (with some law enforcement exceptions).
High Risk
These systems face strict requirements. This category includes AI used in:
- Critical infrastructure,
- Education,
- Employment,
- Law enforcement, and
- Migration.
For example, AI systems used for CV-scanning in recruitment or for assessing creditworthiness.
Limited Risk
These systems are subject to transparency obligations. For example, if you use chatbots, you must ensure users know when they interact with a machine, not a human.
Minimal Risk
Most AI systems fall into this category and are not subject to specific obligations under the Act. But, voluntary codes of conduct are recommended.
Key Requirements for AI Regulation Compliance
If your business uses or develops AI systems, especially high-risk ones, you must follow certain regulations for compliance.
- You need a comprehensive system to identify, assess, and mitigate the risks associated with your AI systems. This includes ongoing monitoring and updates.
- The quality of the data used to train AI systems is critical. You must ensure your data is accurate, relevant, and representative to avoid bias and discrimination.
- Keep clear records of your AI systems. Document their purpose, design, and how well they perform.
- You must give users clear and understandable information about how your AI systems work and their limitations.
- High-risk AI systems must be subject to human oversight. This means that humans should be able to monitor the system’s operation and intervene if necessary.
- Before selling a high-risk AI system, you must complete a conformity assessment. This assessment shows that the system meets the Act’s requirements.
Proactive Steps to AI Risk Management
Similar to all digital regulations, there is more to effective AI risk management than simply ticking boxes. The goal is to build an AI-responsible culture.
- Ensure your employees are well-trained and understand the principles of the EU AI Act and their responsibilities.
- Regularly review and assess whether your AI systems comply with the new rules.
- Ensure your internal policies and procedures are current and reflect the Act’s requirements.
- If you’re unsure about any aspect of the Act, don’t hesitate to seek professional guidance.
The Cost of Non-Compliance
The AI Act penalties for non-compliance are substantial.
Fines can reach up to €35 million or 7% of global annual turnover, whichever is higher. Even though there is a significant financial risk, the damage to our reputation from failing to comply can be even more serious.
Your Key To Compliance
An AI governance framework is essential for compliance with AI regulation. This framework is a clear set of guidelines outlining policies and processes you must follow. It helps ensure that your AI systems follow all the requirements of the Act.
The process must include data collection, risk assessment, human oversight, and documentation.
A strong framework will clearly define roles, outline steps for fixing possible problems, and ensure ongoing checks of your AI systems.
How We Can Help
7ASecurity offers specialised staff training, penetration testing, and security audits.
We don’t just run automated scans; we take a rigorous, manual approach similar to how a real-world attacker would operate. This helps you identify and fix vulnerabilities in your AI systems, ensuring they are robust and secure.
It’s a necessary step in meeting the EU AI Act’s security-related aspects and demonstrating due diligence.
Our services also include training to help get your team up to speed. Put our experience to good use, guiding your team to meet your obligations.
