Navigating the EU AI Act: What Every COO Needs to Know
The European Union's Artificial Intelligence Act (EU AI Act) has officially arrived, setting a new global standard for AI regulation. Flick Fisher recently joined me on Between Two COOs to unpack the Act's implications for businesses worldwide.
The Act introduces stringent compliance guidelines based on AI's perceived risks—ranging from outright prohibited practices to highly regulated high-risk applications. Companies operating internationally must now adjust their product roadmaps, compliance frameworks, and governance programs to remain in line with these evolving regulations.
Flick highlights that enforcement will likely mirror GDPR's pattern, meaning proactive, transparent governance programs are vital to avoiding penalties that could reach €35 million or 7% of global revenue.
Moreover, Flick underscores the Act’s potential geopolitical impacts, suggesting regulatory divergence between the EU, US, and China could significantly influence international business strategies and market access.
Key steps for operational leaders include:
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Conducting a comprehensive AI inventory
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Strengthening vendor risk management processes
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Ensuring data governance and transparency meet the EU's exacting standards
With AI advancements accelerating, understanding and adapting to regulatory frameworks like the EU AI Act is critical for operational resilience and competitive advantage.
Stay informed—listen to our full conversation with Flick Fisher here. https://www.betweentwocoos.com/ai-and-privacy-navigating-the-eus-new-ai-act-the-impact-on-us-companies-with-flick-fisher/
