The European Union has introduced the AI Act, aimed at establishing comprehensive governance for artificial intelligence, particularly addressing risks related to health, safety, and fundamental rights.

Designed to work alongside the General Data Protection Regulation (GDPR), the AI Act ensures that both regulations complement each other, with the AI Act explicitly referencing the GDPR.

While both frameworks emphasize transparency and accountability, they serve different purposes; GDPR regulates data processing, whereas the AI Act focuses on the safety of AI systems.

The GDPR defines roles as controllers and processors, while the AI Act introduces new roles of providers and deployers, leading to potential overlaps in responsibilities.

Organizations must comply with GDPR when their AI systems process personal data, adhering to principles such as transparency, accountability, and lawful processing.

The AI Act permits the processing of sensitive data to correct biases, which presents a conflict with GDPR's stringent rules regarding such processing.

Conflicts may arise between the two regulations, especially concerning automated decision-making, where GDPR requires human oversight and the AI Act mandates it for all high-risk systems.

Both frameworks require assessments to identify and mitigate risks; GDPR mandates Data Protection Impact Assessments (DPIAs), while the AI Act requires Fundamental Rights Impact Assessments (FRIAs).

Both the AI Act and GDPR have extraterritorial scope, meaning that non-EU entities must comply if their services are offered within the EU.

The AI Act will be phased in, with key milestones including prohibitions on unacceptable-risk AI systems taking effect on February 2, 2025, and full application of rules for high-risk AI systems by August 2, 2026.

To prepare for these regulations, organizations should map roles and responsibilities, develop unified compliance processes, train employees, engage with regulators, and stay updated on emerging standards.

The AI Act requires providers of high-risk AI systems to maintain clear documentation and instructions, mirroring GDPR's requirements for data processing compliance.