As companies tap into artificial intelligence (AI) to reach new heights, grasping the implications of the EU AI Act is crucial. How does the EU AI Act impact organisations outside the EU? The EU’s Artificial Intelligence Act marks a significant step in regulating AI, aiming for a unified approach within the EU. This act seeks to ensure AI is used responsibly, safeguarding human dignity and promoting safety and ethical innovation, much like the GDPR does for data protection. However, its application extends beyond the borders of the EU.

Organisations must understand if they fall under this act and what it means. You’re affected if:

  • Your organisation develops or uses AI in the EU.
  • You offer AI-powered services to people in the EU.
  • Your AI processes data about individuals in the EU.

Grasping whether your business needs to follow this act and the outcomes of not doing so is critical to successfully navigating AI regulation.

The responsible entity in AI law

The EU AI Act identifies ‘responsible entities’ similarly to how data protection laws identify ‘data controllers,’ meaning organisations that manage how AI is used. This includes any business developing, deploying, or using AI systems within the EU, regardless of where they’re based. For example, a South African tech company using AI for European customer service would have to comply.

How does the EU AI Act impact organisations outside the EU?

Are we based in a jurisdiction with AI regulations?

Any business operating within the EU or offering services there must follow the AI Act, regardless of location.

Do we use or develop AI in a regulated jurisdiction?

If your AI affects EU citizens in any way, such as processing their data or influencing decisions about them, you need to adhere to the Act.

Exemptions from AI law

Not all AI use requires compliance. You might be exempt if:

  • The AI is for personal or household use only.
  • Your AI doesn’t operate in the EU or affect its citizens.

Navigating AI law compliance

Even if the EU AI Act doesn’t directly apply to your organisation, indirect connections, like partnerships with EU companies or dealing with EU citizens’ data, mean you still need a thorough understanding of and compliance with the law. Assessing these indirect requirements is essential for smooth international operations.

Assistance with AI law compliance

Dealing with the complexity of AI regulation requires an active approach. Consulting services and legal advice can help clarify your compliance needs. Using these services helps ensure your organisation meets current standards and is ready for future changes.

Actions you can take next

Ensuring your business complies with the EU AI Act is more than avoiding fines; it’s about building trust, promoting ethical innovation, and using AI responsibly. As this law becomes a global standard, knowing its demands and effects is vital for any AI-involved organisation, regardless of location. You can: