
The big picture
The European AI Act is a comprehensive AI regulation, setting strict guidelines to ensure AI is safe, transparent, and ethical.
The goal? To build trust in AI technologies while minimizing risks like discrimination, privacy breaches, and misinformation.
Companies using AI—whether for customer service, marketing, HR, or data analysis—will need to comply with new transparency and risk management rules, or face fines of up to 7% of global annual revenue.
Why it matters
AI is already embedded in everyday business tools, often without formal oversight. 60% of marketing teams use ChatGPT, employees rely on AI for spreadsheets, and face recognition tech is becoming common. But with "Shadow IT"—where employees use unauthorized AI tools—businesses face security and compliance risks.
The AI Act introduces new obligations for companies:
✅ AI Literacy Training – Employees that use AI systems must understand risks and safe usage.
✅ Documentation & Transparency – Businesses must assess and undertand AI systems they use and their risk category.
✅ Privacy & Risk Management – Higher risk categories require stricter rules and data compliance.
Ignoring these requirements isn’t an option—non-compliance could mean heavy fines, reputational damage, and legal consequences.
How it works
The AI Act categorizes AI systems based on their potential risk to individuals and society:
🚫 Prohibited AI – Manipulative, deceptive, or discriminatory AI (e.g., real-time biometric surveillance, social scoring).
⚠️ High-Risk AI – Used in critical sectors like healthcare, HR, finance, and infrastructure, requiring strict oversight.
✅ Limited Risk AI – Tools like chatbots must disclose they are AI-driven, ensuring transparency.
💡 Minimal Risk AI – Includes AI-powered spam filters, grammar checkers, and recommendation systems.
The shadow IT problem
Many businesses are unaware that employees already use AI without official approval. This raises security concerns, especially with non-GDPR-compliant tools.
Companies should:
Train employees on how to use AI safely.
Implement secure, compliant AI tools (e.g., Secure GPT for privacy-first AI usage).
Monitor AI applications within the organization to avoid data risks.
What’s next?
The EU AI Act will set a global standard, just as GDPR reshaped data privacy laws. Businesses need to act now by educating employees, assessing AI tools and ensuring compliance.
💡 Is your business ready for the EU AI Act? Join our AI Literacy for SMEs workshop and stay compliant with the EU AI Act.
📩 Reserve your spot at info@connectai.ch
🔥 30% off for the first five sign-ups!
Disclaimer: Created by the thinkers behind Connect AI—polished with a touch of AI
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