The new EU AI Act imposes obligations on providers, deployers, importers, distributors and product manufacturers of AI systems, or companies using AI systems, in any connection with the EU market. BDO breaks down the core elements of how, why, and when businesses will be influenced.
While most AI systems pose limited to no risk and can contribute to solving many societal challenges, certain AI systems create risks that must be addressed to avoid undesirable outcomes in business.
The new EU Act divides AI systems into categories depending on their risk level, with developers and deployers of AI systems in higher-risk categories having to comply with stricter conditions than AI systems in lower categories. Many businesses will not be allowed to use the AI systems in use today.
Businesses will have to be transparent about the use of generated content, informing the persons affected that they are interacting with a machine or machine-generated content.
In fact, even organisations who are only using AI within their own business may face obligations, such as adopting technical and organisational security measures, assigning human oversight, and facing disclosure requirements on the use of AI.
Given that the Act will affect all businesses that want to place AI products on the EU market, and any businesses within the EU that use AI products, it will have an incredibly widespread influence.
Boards should be taking measures to ensure compliance from the inception of the AI system, assessing their role to take measures on transparency, accountability, and risk minimisation. NEDs will have to think more carefully about adjusting governance frameworks in accordance with AI.
BDO’s legal guide and insights not only offers a must-read for breaking down the implications of the act, but also their proven track record of integrated services can accompany boards in identifying which business processes can benefit from the potential of AI, providing the assessment and governance of associated risks, and ensuring compliance with legal obligations.
Learn More
Read BDO’s Legal Guide on the AI Act here.
Read about more of the key takeaways from the Act here.
About BDO
BDO provides accounting, tax, and advisory services to companies across all sectors of the economy. The firm has a proactive, flexible approach to helping businesses overcome the challenges they face, providing innovative and entrepreneurial services in 164 countries.