While most of us were Out of Office, the AI Act came into effect. Of course, it had been announced quite some time ago that this would happen, so it didn’t really come as a surprise. In fact, we wrote about it before. But still many companies either don’t know about this new piece of legislation, or they simply don’t care.
But they should care. The AI Act is the world’s first comprehensive regulation on artificial intelligence. It aims to ensure that AI is safe, transparent, and aligned with fundamental rights.
Now that the Act is in force, companies across the globe — especially those operating in Europe — must take swift action to adapt to these new rules. Here’s a guide on what businesses should prioritize to comply with the AI Act and future-proof their operations.
The AI Act categorizes AI systems based on their risk level: from minimal or no risk to high risk and unacceptable risk. Each category comes with its own set of rules:
Action Step: Companies need to classify their AI systems under these categories to understand their obligations. Reviewing the AI Act’s annexes, which detail the high-risk sectors, is critical for determining compliance needs for your organization.
One of the first steps any organization should take is to take an inventory of all AI systems currently in use. This includes not only AI developed in-house but also third-party AI solutions integrated into business processes. And when you make that inventory, make sure to also get all the AI tools that individual coworkers are using. From experience, we know that a lot of people use something on an individual basis, so team leaders may not even be aware of some of the AI tools in use in your organization.
Key Considerations:
By mapping out AI systems, you can prioritize compliance efforts based on risk levels and ensure that high-risk AI systems are addressed first.
The AI Act requires companies to provide clear documentation about how their AI systems work, how data is processed, and how your organization makes decisions. This transparency is crucial, especially for high-risk systems, and these will need to meet strict reporting requirements.
Action Steps:
Data quality is at the heart of the AI Act’s focus on fairness and transparency. It emphasizes the need for high-quality, representative datasets to avoid bias, particularly for high-risk systems. And let’s be frank here: even if there was no AI Act, it STILL would be best practice to make sure your data quality is as high as possible and is governed the right way. If you’re in marketing or sales, you want to make sure you handle data in your CRM with care.
Action Steps:
One of the key principles of the AI Act is the need for transparency. This is especially the case when it comes to decision-making processes. For AI systems that impact individuals, companies need to ensure that AI models are explainable and that users can understand how decisions are made. Some examples of this include AI systems that are used for hiring employees or for taking credit decisions.
Action Steps:
Many organizations rely on third-party AI solutions to enhance their operations. These external providers also need to comply with the AI Act. As a result, need need to carefully assess your AI vendors and ensure they meet all the regulatory standards.
Action Steps:
Compliance with the AI Act may require organizational changes and training for your staff. Employees should know the AI Act’s rules well, especially those involved in data, AI development, and compliance.
Action Steps:
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