When the EU’s General Data Protection Regulation (GDPR) first took effect in May 2018, it was a watershed moment that set a new standard for data protection and privacy. But it also revealed glaring gaps in compliance readiness, even among the most prominent players in tech.
Despite their vast resources, companies like Google and Meta found themselves having to deal with unforeseen challenges and hefty fines for non-compliance. GDPR continues to loom large today, and its regulatory requirements are compounded by the newest EU regulation, the EU AI Act.
Time will tell if the industry at large has heeded the lessons of GDPR and whether companies will be able to better meet the demands of the EU AI Act. Aside from significant reputational damages that a company could incur, the financial repercussions of violating the EU AI Act are serious. Selling a prohibited AI product in the EU could mean paying a fine of over $37 million or up to 7% of a company’s total annual revenue.
In the U.S., the regulatory landscape is an array of federal guidelines, executive orders, and state or local legislation, like Colorado’s SB205. The mix of requirements complicates matters for enterprises and SMEs that seek to capitalize on AI while insulating themselves from downstream risks and ramifications.
Time will tell if the industry at large has heeded the lessons of GDPR and whether companies will be able to better meet the demands of the EU AI Act. Aside from significant reputational damages that a company could incur, the financial repercussions of violating the EU AI Act are serious. Selling a prohibited AI product in the EU could mean paying a fine of over $37 million or up to 7% of a company’s total annual revenue.
In the U.S., the regulatory landscape is an array of federal guidelines, executive orders, and state or local legislation, like Colorado’s SB205. The mix of requirements complicates matters for enterprises and SMEs that seek to capitalize on AI while insulating themselves from downstream risks and ramifications.
Keeping pace with these emerging regulations while building public trust in the technology are growing priorities for companies. To ensure AI models operate safely and responsibly, business leaders must take proactive steps to understand and consider new approaches to tracking and controlling the way they use data to power AI systems.
