AI regulation is no longer just a tech or compliance issue, it’s becoming a boardroom priority.
In the US at a federal level the government seems to be actively opposed to AI regulation and in the UK, despite an interesting Private Member’s Bill, there’s no sign of any overarching AI law. But while the US and UK are still debating their approaches, the EU is ahead of the game with the world’s first comprehensive AI law: the EU AI Act. If you do business in or with Europe, this will affect you.
Why Should You Care?
No EU presence? Doesn’t matter. If you have EU customers or suppliers, you’ll likely be contractually required to meet the Act’s standards
Remember GDPR? The EU’s data privacy rules became the global benchmark. Expect the AI Act to have a similar impact
The Risk-Based Framework: What’s In, What’s Out
1. Unacceptable Risk: Banned
- Social scoring, manipulative AI, and biometric categorisation based on sensitive traits are prohibited
- Watch out: Using “black box” AI for things like fraud prevention or dynamic pricing could put you at risk
2. High-Risk AI: Strict Controls
- Applies to recruitment, education, healthcare, credit scoring, policing, and safety-critical infrastructure
- Requirements: Detailed risk assessments, transparency, human oversight, and conformity checks before launch
- Don’t assume you’re exempt: Even apparently innocuous recruitment screening tools could be caught by these rules
3. General-Purpose & Generative AI: New Obligations
- Foundation models (like ChatGPT or image generators) must ensure transparency, label AI-generated content, manage systemic risks, and clarify use of copyrighted data
4. Limited-Risk AI: Transparency Required
- Chatbots and similar tools must clearly inform users they’re interacting with AI.
- Heads up: Many bot providers still advise clients to hide from customers that they’re talking to machines —this will need to change
5. Minimal-Risk AI: Largely Unaffected
- Spam filters, video game AI, and similar tools are mostly out of scope
The Compliance Challenge
For UK and global businesses, the message is clear: even without local laws, EU standards will shape your obligations. Cross-border operations will face growing compliance pressure, just as they did with GDPR.
Balancing Innovation and Compliance
The real challenge? Staying innovative while meeting new regulatory demands. Businesses must:
- Identify which AI systems are in scope (which will include understanding exactly which parts of the business are using AI, to do what)
- Ensure transparency and risk management
- Be ready to demonstrate compliance to customers and partners
Need Help Navigating the EU AI Act?
At Customer Contact Panel, we help organisations find compliant, effective AI solutions—so you can innovate with confidence and accountability.
