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The EU AI Act: what it means for UK companies

The EU AI Act, which was approved by the European Parliament in March 2024, lays the foundations for the regulation of artificial intelligence (AI) in the EU. Its goal is to provide “clear requirements and obligations regarding specific uses of AI”, according to EU policymakers. It is also intended to reduce administrative and financial burdens for businesses, in particular small- and medium-sized enterprises (SMEs). The Act should be fully implemented by 2026. 
The EU AI Act aims to set out a regulatory framework for AI systems, with a focus on safety, privacy and preventing bias and discrimination. It’s the world’s first major piece of AI legislation and has a broad scope with a risk-based approach. Once implemented, it will apply to any UK company which uses AI systems within the EU, makes them available on the EU market, or takes part in any other activity regulated by the Act. Companies must be able to guarantee that their AI systems are compliant: otherwise, they may face financial penalties and damage to their reputation.

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