The EU AI Act is the world’s first comprehensive AI regulation — a landmark step in setting global standards for trustworthy and ethical AI.
But for many organizations, a key question remains:
Does this apply to us?
The answer might surprise you.
Who Is Affected?
The EU AI Act applies broadly. You don’t need to be based in the EU to fall under its scope. Here’s who needs to pay attention:
- AI Providers: Organizations that develop or place AI systems on the EU market — regardless of where they are based.
- AI Deployers (or users): Entities using AI systems within the EU, even if the technology was developed elsewhere.
- Importers and Distributors: Those bringing AI systems into the EU or selling them within the EU market.
In short: if your AI system touches the EU market in any way, the Act likely applies to you.
A Risk-Based Approach
The EU AI Act doesn’t treat all AI equally. Its risk-based framework classifies AI systems into four categories:
- Unacceptable risk: Prohibited entirely (e.g., social scoring, manipulative tech)
- High risk: Strictly regulated (e.g., AI in hiring, education, law enforcement)
- Limited risk: Subject to transparency obligations (e.g., chatbots, deepfakes)
- Minimal risk: Freely allowed (e.g., AI in spam filters or video games)
If your system falls into the high-risk category, expect requirements around documentation, data governance, human oversight, and post-market monitoring.
What It Means for Global Organizations
Even if you’re based in the U.S., Asia, or elsewhere, if your AI system is sold or used in the EU — directly or through partners — you’re accountable under the Act.
That means now is the time to:
- Map your AI systems and assess risk levels
- Audit your data practices for fairness and transparency
- Build documentation and compliance into your development lifecycle
More Than Compliance
The EU AI Act is not just a regulatory burden — it’s an opportunity to build trustworthy AI. It sets a clear bar for responsibility, and early adopters of these standards are likely to enjoy competitive advantages in regulated markets.
