The European Parliament officially adopted the EU AI Act on March 13, 2024, establishing the first comprehensive legal framework for artificial intelligence.

The Act enforces regulations across the EU focused on data quality, transparency, human oversight, and accountability, with fines up to €35 million or 7 percent of global annual turnover for non-compliance.

AI systems are categorized by risk level, with high-risk systems subject to stricter compliance standards.

Organizations are mandated to perform in-depth audits of AI systems, foster AI literacy, adhere to ethical AI practices, and establish strong governance and security measures.

The legislation aims to ensure AI safety, transparency, equity, and non-discrimination within the EU, and non-compliance may affect other regulatory areas like data privacy and equality laws.

U.S. companies could be impacted, as they may need to meet EU AI regulatory standards to maintain competitiveness in the global market.

The Act offers challenges and opportunities for cybersecurity teams and organizational leaders to exemplify responsible AI use and build a trustworthy AI ecosystem.

The AI Act is set to come into effect within two years, affecting employers that utilize AI systems in the workplace and necessitating compliance to ethical and fair AI usage standards.