How will the EU AI Act affect businesses?

What is the EU AI Act and how does it impact businesses?

The EU AI Act is a regulatory framework aimed at ensuring the safe and ethical use of AI technologies. It categorizes AI systems based on risk levels and imposes requirements on businesses that develop or use these systems.

What are the main requirements for businesses under this act?

Businesses must comply with various requirements, including risk assessments, transparency obligations, and ensuring that AI systems are designed to be safe and non-discriminatory.

How will this affect small businesses compared to large corporations?

Small businesses may face challenges due to limited resources for compliance, while large corporations might have more capacity to adapt. However, the act aims to create a level playing field by ensuring all businesses adhere to the same standards.

Are there any penalties for non-compliance?

Yes, non-compliance can result in significant fines, which can be up to 6% of a company's global annual turnover, depending on the severity of the violation.