The European Union’s landmark Artificial Intelligence (AI) Act has officially taken its first steps into implementation, marking a significant moment in the global regulation of AI technologies. As of last week, key provisions of the Act, particularly those targeting AI systems deemed to pose an “unacceptable risk,” have come into force. This includes bans on AI-driven social scoring, manipulative AI applications, and biometric-based predictive systems.
Despite these regulatory advancements, compliance across industries remains sluggish. Many companies are still grappling with the Act’s requirements, trying to assess the impact on their operations. Initial observations suggest that while awareness is growing, full compliance is far from widespread. The slow pace of adherence can be attributed to multiple factors, ranging from lack of AI governance frameworks to the complexities of enforcement.
Why Is Compliance Lagging?
The delayed compliance with the EU AI Act is not necessarily a sign of resistance but rather an indication of the challenges organizations faces in adapting to the new legal landscape. Several key reasons contribute to this sluggish response.
The Act mandates that AI deployers and providers ensure their employees have a sufficient level of AI literacy, a requirement that is only beginning to gain traction. Many businesses have yet to implement structured training programs or appoint dedicated AI governance teams. Without a clear internal framework, companies struggle to assess and mitigate compliance risks effectively.
This uncertainty makes it difficult for businesses to gauge how urgently they need to act. Some companies may opt for a “wait-and-see” approach, delaying full compliance until clearer enforcement patterns emerge.
A similar trend may unfold with the EU AI Act. Large AI providers, particularly those offering biometric identification tools, automated decision-making systems, and predictive analytics, are expected to be the first targets of enforcement. As a result, smaller companies that use AI peripherally may not yet feel the same urgency to comply.
For businesses that serve both EU and non-EU markets, striking the right balance between compliance and operational flexibility is a major challenge. Companies may need to develop different AI governance strategies for different regions, which can slow down implementation efforts.
The Path Forward: Steps for Businesses to Achieve Compliance
Despite these challenges, businesses cannot afford to ignore the EU AI Act. As regulatory scrutiny increases, organizations must take proactive steps to align with the new framework. Here are key measures companies should adopt:
Conclusion
The EU AI Act marks a historic shift in how artificial intelligence is regulated, setting a precedent for other jurisdictions. However, the slow pace of compliance underscores the complexities of adapting to this new legal framework. Many companies are still in the early phases of understanding and implementing the necessary changes, hindered by lack of awareness, resource constraints, and uncertainty about enforcement.
As regulatory scrutiny increases in the coming months and years, businesses must take proactive steps to align with the EU AI Act’s provisions. While initial enforcement may focus on larger AI providers, companies of all sizes should begin strengthening their AI governance frameworks now to avoid potential legal and financial risks down the line.
By embracing AI governance and ethical compliance, organizations can not only meet regulatory requirements but also build trust with consumers, stakeholders, and regulators in an era of rapidly evolving AI technologies.