AI regulation has moved from "maybe someday" to "right now." The EU AI Act is the world's first comprehensive AI law, and other jurisdictions are following. Whether you build AI or use AI tools, you need to understand what's required.
EU AI Act: Key Points
- Risk-based approach — AI systems are classified by risk level: unacceptable (banned), high-risk (strict requirements), limited risk (transparency obligations), and minimal risk (no restrictions)
- High-risk AI — Includes AI in: hiring, education, healthcare, law enforcement, and credit scoring. These need human oversight, documentation, and bias testing.
- Transparency — Users must be told when they're interacting with AI (chatbots, AI-generated content, deepfakes)
- General-purpose AI — Providers of foundation models must publish training data summaries, comply with copyright, and conduct risk assessments
US AI Landscape
The US takes a sector-by-sector approach rather than comprehensive legislation:
- Executive Order on AI Safety — Requires safety testing for powerful AI systems
- State laws — Multiple states have passed AI-specific legislation, particularly around deepfakes, hiring, and consumer protection
- Sector regulation — FDA for medical AI, SEC for financial AI, FTC for consumer protection
What Businesses Must Do
- Inventory your AI — Know what AI tools you use and what data they process
- Assess risk — Classify your AI use cases by the EU risk framework, even if you're not in the EU (it's good practice and your EU customers need it)
- Document — Maintain records of AI systems, their purposes, data sources, and decision-making processes
- Ensure transparency — Disclose AI use to customers and employees when required
- Monitor for bias — Regularly test AI outputs for fairness across different populations
Practical Compliance Steps
- Start with a simple AI usage policy for your organization
- Train employees on responsible AI use
- Review vendor AI tools for compliance commitments
- Keep humans in the loop for high-stakes decisions
- Document everything — the trend is toward more regulation, not less
For using AI in business responsibly, explore our Business Strategy prompts.