Why the EU's AI Act is about to become enterprises' biggest compliance challenge

6 hours ago

The EU AI Act's most consequential provisions take effect on August 2, 2026, impacting global enterprises with penalties up to 7% of global turnover.
Agentic AI, which autonomously reasons and executes workflows, presents unforeseen compliance challenges as the regulation was designed for static AI models.
High-risk AI systems must comply with risk management, data governance, and transparency requirements, with strict penalties for non-compliance.
Enterprises face significant compliance costs, ranging from $2-25 million, primarily for governance infrastructure rather than technology.
The European Commission's Digital Omnibus package may delay some requirements, but enterprises are advised to prepare now.
Effective compliance involves AI system mapping, documentation, human oversight, transparency systems, and continuous monitoring.
The AI Act's extraterritorial reach and the new EU Product Liability Directive increase legal exposure for ungoverned AI deployment.
Companies with robust AI governance frameworks will gain competitive advantages in deploying AI systems and entering regulated markets.

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