Law.com quoted partner Vishnu Shankar in an article about the European Union’s (EU) Artificial Intelligence (AI) Act and the significant compliance challenges companies will face due to the act’s novel and stringent requirements.
Vishnu emphasizes that categorizing AI systems under the EU AI Act is crucial yet, “the most important and challenging part of a compliance program … that will then determine the trajectory of your whole compliance program.” He notes that the EU AI Act’s expansive reach means even parent companies could be liable for AI use by their subsidiaries, adding, “the definitions of what is high-risk or what is prohibited versus the lower two categories are ambiguous.”