The EU Sounds The Clarion Call On Artificial Intelligence Regulation
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Executive Summary
Given the proliferation of artificial intelligence (AI) technology across business functions, the EU developed a consolidated, formalized approach to AI regulation for users and developers within the EU. The regulation was adopted in April 2021 and aims to harmonize existing laws and future proof safe AI development. In this report, we help risk management and compliance executives as well as heads of functions shield against AI risk, by offering an overview of the current AI regulatory landscape, breaking down compliance requirements and proposing mitigation strategies for different risk profiles and levels.EU Artificial Intelligence Act Will Be The Dominant Regulatory Framework Going Forwards
The Current AI Regulatory Landscape Is Complex, Fragmented And Evolving
The Proposed Regulation Aims To Harmonize Existing Laws And Future Proof Safe AI Development
The Regulation Will Create Obligations For Both Developers And Users Of AI
Firms Developing And Deploying High-Risk AI Systems Will Be Subject To Stringent Auditing And Review Processes
Firms Must Allocate Greater Resources To Manage AI Risk
Developers Should Prepare For An Oncoming Wave Of AI Regulation
Figure 2. AI Systems Most Relevant To The Private Sector Affected By The Regulation
Figure 3. Obligations Of Providers Of High-Risk AI Systems
Figure 4. Firm Profiles And Associated Risk Level
Figure 5. Comparison Of Passive, Active And Proactive AI Risk Management Approaches For Medium And High Risk Firms
Figure 6. AI Adoption Rates And Risk By Business Function
About the Authors
Chris Sayers
Senior Manager
Chris is a Senior Manager at Verdantix. His current research agenda targets enterprise AI integration and adoption, AI market trends and agentic AI. Chris joined Verdantix in ...
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Victor Voulgaropoulos
Director, Advisory Services
Victor is a Director in the Verdantix Advisory practice, where he leads pre-deal and growth strategy engagements for private equity firms, software vendors and corporates. Wit...
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Hugo Fuller
Senior Analyst
Hugo is a Senior Analyst in the Verdantix Industrial Transformation practice. His current research agenda explores the technologies within the industrial asset management soft...
Ben Hext
Industry Analyst
Ben is an Industry Analyst in the Verdantix Smart Buildings practice. His current agenda covers hardware and software solutions for energy management, on-site power ...
Rodolphe d’Arjuzon
Chief Product Officer and Co-Founder
Rodolphe co-founded Verdantix in 2008. As Chief Product Officer, he leads the firm’s research strategy and intellectual agenda. With over 20 years of experience in techn...
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