The Impact of EU's AI Act on Global Corporate Governance
The Impact of EU's AI Act on Global Corporate Governance
The forthcoming EU AI Act introduces stringent requirements for companies utilizing artificial intelligence within the European Union, mirroring the GDPR's approach but specifically tailored to AI technologies. This legislation not only imposes significant penalties for non-compliance but also sets a precedent that may influence similar regulations globally, including in the United States. Board members and non-executive directors must understand the governance implications of this act, ensuring their organizations undertake comprehensive reviews and operational adjustments for compliance. This necessitates a proactive strategy that integrates ethical, reputational, and regulatory considerations into the core governance framework of AI technologies.