watsonx.governance

Part 2 of the series about the EU AI Act, its ramifications and how to prepare for it.

The EU AI Act uses a classification system categorizing risk to users. The three levels are, prohibited systems with little exception, high-risk and low risk systems. These levels will dictate the extent of regulation and fines for non-compliance. Under the EU AI ACT, companies not complying at the  highest level can face fines as much as 7.5 million euros or 1.5% of a company’s total worldwide annual turnover (whichever is higher). For companies believed that the EU AI Act will help to shape future AI regulations worldwide, much like GDPR did. For Global companies that are directly affected by the act, the time is now to proactively build governance into the planning and strategy of your AI initiatives. This will help your organization achieve compliance, avoid expensive audits, fines and damage to your organization’s reputation. For those organizations  not directly affected by the EU AI Act, regulations and standards are growing and changing quickly, there is the need to proactively prepare. 

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