The EU’s AI Act compels businesses to understand where AI makes decisions, shifting focus from technology implementation to risk management.
AI Implementation Without Governance
Artificial intelligence has entered companies faster than governance structures. It typically starts innocently: someone in marketing uses a chat for drafting content, someone in sales launches a bot, and someone in IT tests a tool for code automation. At this initial stage, legal problems rarely emerge.
The Emergence of Decision Chaos
Instead, something more dangerous appears: decision-making chaos characterized by a lack of rules, ownership, and awareness of where and for what purposes AI is being utilized within the organization.
The AI Act’s Core Focus
The key insight from the EU’s AI Act is that it doesn’t ask whether companies are using AI, but rather whether they understand where AI makes decisions on their behalf. This regulation centers on risk and responsibility, not the technology itself.