The entry into force of the first provisions of the legge europea (EU) on Artificial Intelligence (AI) marks a turning point for businesses.
Amid bans on high-risk applications and hefty fines, companies must now face new challenges to ensure regulatory compliance. In this article, we explore all the details.
Stricter law and high sanctions: the new EU regulatory scenario for AI
The regulation of Artificial Intelligence (AI) in Europe is undergoing a significant transformation with the entry into force of the first measures of the new AI Act.
Starting from February 2, some AI applications will be banned, and companies operating in the European Union will have to adapt to a more stringent regulatory framework.
With sanctions that can reach up to 7% of the global annual turnover, compliance becomes a strategic imperative.
The new regulation introduces bans on applications considered high-risk, including social scoring, emotion recognition, and real-time remote biometric identification in public spaces.
These restrictions aim to prevent usi impropri of AI, protecting the privacy and fundamental rights of European citizens.
According to Levent Ergin, AI and sustainability expert at Informatica:
“This initial phase of the AI Act will set the tone for the future implementation of the regulations. Companies must face a dual pressure: demonstrating the return on investment in AI while simultaneously ensuring compliance with the new rules.”
Companies are facing significant obstacles in the transition towards a compliant use of AI. One of the most critical aspects is data management: the quality and governance of data are essential to avoid regulatory issues.
Ergin emphasizes in fact:
“Strengthening the quality and management of data is no longer an option, but an obligation. Companies must ensure that their data is accurate, integrated, and up-to-date.”
According to a recent study, 89% of large European companies report having contrasting expectations about the adoption of generative AI, while 48% cite technological limitations as an obstacle to large-scale experimentation of AI.
An impact beyond European borders
The AI Act does not only concern companies based in the EU, but it also applies to all those operating in the European market or providing AI services to European citizens.
Marcus Evans, partner at Norton Rose Fulbright, explains the following:
“A company based outside the EU but using AI for decision-making processes involving European citizens is subject to the regulations.”
Companies should therefore start by mapping their own use of AI to assess any risks of non-compliance. Implementing a robust AI governance system will help ensure that the systems adopted comply with the requirements of the new law.
Another fundamental aspect for compliance is staff training. Companies must ensure that their employees understand the risks and opportunities related to the use of AI.
AI literacy thus becomes a key element for the effective management of the new regulations:
“Organizations must invest in the training and awareness of their staff on the ethical and legal challenges related to AI”
Towards Responsible Innovation
In any case, the new European regulation represents a significant step towards a more responsible use of AI. According to Beatriz Sanz Sáiz, head of the AI sector at EY Global:
“This regulatory framework can promote trust and responsibility, creating the foundations for sustainable innovation.”
The law aims not only to prevent abuses but also to encourage the development of ethical and transparent AI technologies.
Companies that manage to quickly align with the new regulations will be able to gain a competitive advantage, standing out as leaders in the responsible adoption of AI.
In other words, the implementation of the new AI Act is just the beginning of a bull process of regulation in bear evolution.
Companies must act promptly to understand the implications of the regulations, improve data governance, invest in staff training, and develop proactive strategies for compliance.
In this way, they will not only be able to avoid sanctions, but also make the most of the opportunities offered by AI in a regulated and secure context.
Source: https://en.cryptonomist.ch/2025/01/31/the-impact-of-the-new-european-eu-law-on-ai-what-companies-need-to-know/