EU AI Act
Working knowledgeEvergreen Landmarks
Also called: AI Act
The EU AI Act, enacted in 2024, is the world's first comprehensive legally binding regulatory framework governing the development and commercial operation of artificial intelligence within the European Union. It takes a risk-based approach, imposing legal obligations, mandatory risk management and heavy financial penalties on companies developing or deploying high-risk or prohibited AI systems.
In practice
Classify your AI systems by risk tier before a deal closes rather than after, because a system that lands in the high-risk tier carries documentation, testing and governance duties that change what it costs to run. In diligence the question is whether the target has done that classification at all, and whether it can evidence it.