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Compliance Management
Risk Management
Third-Party Risk Management
Internal Audit
Data Privacy
Business Continuity & Resilience
- Compliance Management
- 16th Jan 2025
- 1 min read
Preparing for the EU Artificial Intelligence Act: Everything You Need to Know
- Written by
In Short...
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The EU AI Act introduces the world’s first comprehensive AI regulation, with phased requirements from 2024 to 2027.
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Its risk-based framework classifies AI systems from prohibited to high-risk, imposing strict obligations on organisations that develop, deploy or distribute AI.
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Compliance is essential to protect users, uphold rights, maintain market trust and avoid fines of up to €35 million or 7% of global turnover.
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Organisations must identify all AI systems, assess and categorise risk levels, manage third-party AI exposures and ensure transparency and human oversight.
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Continuous monitoring, incident reporting and strong documentation are critical to staying compliant as expectations evolve.
Introduction
As the use of Artificial Intelligence (AI) becomes more pervasive, the European Union (EU) has introduced a comprehensive framework to regulate AI systems: the EU Artificial Intelligence Act. This landmark legislation, set to roll out from 2024 to 2027, underscores the need for responsible AI development and governance. In this blog, we’ll break down key aspects of the EU AI Act, including its scope, importance, and how SureCloud can support compliance.
What is the EU Artificial Intelligence Act?
The EU Artificial Intelligence Act is a pioneering regulation aimed at ensuring the ethical and responsible development and deployment of AI systems across EU member states. Its primary goal is to address risks associated with AI, protecting public safety, fundamental rights, and fostering innovation under clear guidelines.
Key enforcement dates:
• November 2024: Initial compliance obligations.
• June 2027: Sector-specific obligations come into force for critical domains like healthcare, transportation, and infrastructure.
The Act’s cornerstone is its risk-based framework, categorizing AI systems into four tiers:
• Prohibited AI Systems: Those posing unacceptable risks, such as exploiting vulnerabilities or social scoring systems.
• High-Risk AI Systems: Systems critical to safety or rights, requiring strict oversight.
• Low-Risk AI Systems: Minimal compliance obligations, such as transparency requirements.
• General-Purpose AI Systems: AI integrated into varied applications, like chatbots or analytical tools.Who is Affected by the EU Artificial Intelligence Act?
The Act has a broad scope, impacting organizations across the AI lifecycle, including:
• Providers and Developers: Those creating or supplying AI systems.
• Distributors and Importers: Organizations introducing AI systems into the EU market.
This legislation applies to all businesses serving or operating within the EU market, regardless of size. Non-compliance can lead to fines up to €35 million or 7% of annual global turnover, making adherence non-negotiable for affected organizations.
Why the EU Artificial Intelligence Act Compliance is Important
AI technology brings immense opportunities, but it also introduces risks. Compliance with the EU AI Act is essential for several reasons:
• Risk Mitigation: Ensures AI systems do not harm individuals or violate rights.
• Market Trust: Builds confidence among consumers and stakeholders.
• Regulatory Alignment: Avoids legal penalties and reputational damage.
• Innovation Enablement: Provides clear standards to foster responsible AI development.
Preparing early for compliance ensures organizations stay ahead of the curve and avoid costly disruptions.
Key Pillars of the EU Artificial Intelligence Act
Identify all AI-enabled systems in use, ensuring prohibited systems are decommissioned. Catalog AI functionalities and data use, leveraging GDPR frameworks for efficiency.
Risk Assess & Categorize:
Evaluate AI systems to determine risk levels. Establish risk management plans and document system functions to ensure transparency.
Manage Third-Party Risks:
Work with vendors to ensure their AI systems align with compliance requirements. Incorporate contractual obligations and conduct thorough vendor risk assessments.
Conformity Assessment & Transparency:
Ensure high-risk systems meet certification standards and notify users when interacting with AI. Human oversight mechanisms are also a key requirement.
Monitoring and Incident Management:
Continuously evaluate AI systems for emerging risks, maintain up-to-date documentation, and report incidents promptly to regulators.
How SureCloud Can Help
SureCloud offers a cutting-edge Governance, Risk, and Compliance (GRC) platform to streamline compliance with the EU AI Act. Here’s how we support organizations:
SureCloud’s platform ensures that your business is not only compliant but also resilient, providing peace of mind in a complex and ever-changing digital world.
• Centralized Compliance Management: Simplify tracking of AI systems, risk assessments, and compliance tasks in one platform.
• Customizable Risk Assessments: Evaluate and document AI systems efficiently with tailored workflows.
• Third-Party Vendor Management: Monitor vendor compliance and manage third-party risks seamlessly.
SureCloud’s platform integrates seamlessly with existing GRC frameworks, enabling organizations to confidently meet regulatory requirements while focusing on innovation.
Related resources
“In SureCloud, we’re delighted to have a partner that shares in our values and vision.”
Read more on how Mollie achieved a data-driven approach to risk and compliance with SureCloud.
“In SureCloud, we’re delighted to have a partner that shares in our values and vision.”
Read more on how Mollie achieved a data-driven approach to risk and compliance with SureCloud.
“In SureCloud, we’re delighted to have a partner that shares in our values and vision.”
Read more on how Mollie achieved a data-driven approach to risk and compliance with SureCloud.
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