The EU AI Act is set to have far-reaching implications for the global AI landscape and US businesses. Steve Chase, vice chair of AI and digital innovation at KPMG US, emphasizes the need for US companies to have the right guardrails in place to comply with the EU AI Act and forthcoming regulations. It is crucial for US companies to navigate these regulations without hindering the progress of generative AI.
Forrester Principal Analyst Enza Iannopollo highlights that the EU has established itself as the standard-bearer for trustworthy AI, AI risk mitigation, and responsible AI with this regulation. Other regions will now have to catch up to the EU’s standards. The fact that the EU moved the vote forward by a month demonstrates their recognition of the fast-paced nature of the AI industry.
The EU AI Act’s extra territorial effect, hefty fines, and pervasive requirements across the AI value chain mean that most global organizations using AI must comply with the act. Some of its requirements will be enforced later this year. Organizations are advised to assemble an “AI compliance team” consisting of members from IT, data science, legal, risk management, and the C-suite to effectively meet these requirements.
While some foundation model companies like OpenAI, Google, and Anthropic have not yet released comments on the EU Parliament’s approval of the AI Act, other tech leaders have expressed their support. IBM’s vice president and chief privacy and trust officer, Christina Montgomery, commended the risk-based approach of the act, aligning with IBM’s commitment to ethical AI practices. Salesforce’s executive vice president of global government affairs, Eric Loeb, believes that risk-based frameworks like the EU AI Act can make a substantial positive impact on AI ethics and trustworthiness.
This development in AI regulation will shape the future of AI implementation not only within the EU but also globally. US companies must adapt to comply with these regulations while continuing to advance their AI initiatives. The EU’s proactive approach in setting standards for trustworthy and responsible AI positions them as leaders in the field. As the global AI landscape evolves, it is essential for organizations to keep up with the rapidly changing regulatory environment and ensure compliance to unlock the incredible potential of responsible AI.
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