Published on March 13, 2024, 8:30 pm

Stay up-to-date with the latest developments in the world of Artificial Intelligence with CIO Dive’s free newsletter, delivered conveniently to your inbox. Compliance is becoming crucial for businesses as regulations evolve, especially in Europe where organizations need to align with the new AI rules promptly.

Enza Iannopollo, a principal analyst at Forrester, emphasized the importance of swift action due to the stringent regulations and broad scope of requirements. Global companies leveraging AI must ensure compliance with the EU’s AI Act to avoid substantial fines ranging from 7.5 million to 35 million euros for noncompliance based on the severity of infringements and company size.

The EU’s proactive approach in advancing AI legislation highlights the urgency within the industry. This swift progression signals that adaptation is essential as technology advances rapidly, leaving no room for delay or alternative frameworks. Industry experts anticipate that U.S. lawmakers will use the EU’s regulations as a reference point when shaping future domestic policies related to AI.

In comparison to prior regulatory initiatives, such as executive orders or voluntary commitments, the EU’s AI Act introduces consequences for violations, emphasizing accountability among organizations. Drawing parallels with GDPR enforcement, this legislative shift serves as a reminder for businesses to align their operations with evolving requirements swiftly.

Amy Matsuo from KPMG U.S. stresses the importance of not just establishing risk governance but actively implementing and sustaining effective risk management practices in line with new AI regulations. As federal agencies in the U.S. take steps towards enforcing AI-related executive orders, it becomes imperative for organizations to evaluate their processes vis-a-vis these emerging standards.

Furthermore, acquisitions by tech giants like IBM, Cisco, and SAP suggest a trend where IT executives are streamlining their spending around key vendors—a strategy allowing for centralized IT investments.

With continuous updates and insights provided by CIO Dive’s newsletter curated by industry professionals, staying informed about critical AI developments has never been easier!

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