AI

Should I Stay or Should I Go ?

Asitha Rodrigo

• 2 min read
Should I Stay or Should I Go ?

This is the question on every UK company’s lips when you are working with AI and also operate in the EU or serve EU customers.

The EU AI Act, published in July 2024, is the world’s first comprehensive AI regulation and UK businesses that operate in the EU or serve EU customers must comply, as the rules apply wherever AI outputs are used in the EU. In that initial glow of excitement as you are surrounded by the AI Unicorn Swarm, don’t forget the grey coated regulatory European Unicorn herders that will soon follow. Their arms are long and powerful…

4 Tier Risk System

The Act introduces a four-tier risk system for AI with proportionate measures to be taken for each category.

🚫 Unacceptable Risk – Banned: e.g., systems that manipulate behaviour or conduct unauthorised real-time remote biometric identification. Fines up to €35M or 7% of global turnover.

⚠️ High Risk: AI in hiring, credit scoring, healthcare, or law enforcement requires risk management, documentation, and human oversight.

📊 Limited Risk: Transparency is required. Users must know they are interacting with AI.

✅ Minimal Risk: Most AI systems fall here, with minimal obligations.

Key Dates

Remember the EU AI Act is now operational!!!

  • Feb 2025: Prohibitions and AI literacy rules take effect
  • Aug 2025: GPAI model and governance obligations
  • Aug 2026–27: High-risk system requirements phased in

Penalties range from €7.5M/1% turnover to €35M/7% for serious breaches.

Steps for UK Businesses

  • Assess all AI systems and their EU connections
  • Classify by risk category
  • Document decisions, governance, and risk processes
  • Review Contracts to include AI compliance responsibilities
  • Mitigate Risks with testing, transparency, and incident procedures
  • Use the EU AI Act Compliance Checker https://lnkd.in/eMJCS9CG

Key Takeaways and Resources

  • The EU AI Act affects UK businesses serving EU markets
  • Severe penalties apply for non-compliance
  • Early planning is essential to manage risk and maintain market access

If you are already doing everything you need to be compliant with GDPR, then it shouldn’t be a big lift take your use of AI into account and cover the EU AI Act bases but not doing so could end up being an expensive omission. The best resource to learn more is the EU’s own AI Act Site - 🇪🇺 https://lnkd.in/euZwB8kh

How has the Act affected your business, and how are you handling it ? Let me know below.