Artificial intelligence is becoming an increasingly important regulatory issue for businesses operating in or serving the European market.

The EU AI Act introduces a risk-based framework for AI, with different obligations applying depending on how AI systems are developed and used. From 2 August 2026, transparency requirements began applying to certain AI systems, including requirements around informing people when they are interacting with AI and identifying certain AI-generated or manipulated content.

The implementation timeline has also been revised. Obligations for high-risk AI systems in certain use cases are scheduled to apply from 2 December 2027, while requirements for high-risk AI systems embedded in regulated products are scheduled to apply from 2 August 2028.

For businesses adopting AI, the regulatory conversation is therefore moving beyond innovation and into areas such as transparency, governance and compliance.

Why we’re watching:

As businesses increasingly integrate AI into their products, services and internal operations, understanding the rules that apply to their particular use of AI will become an increasingly important part of managing regulatory risk.

Source: European Commission