Navigating the EU AI Act in 2025: Key Actions and Compliance Strategies

The EU AI Act: A Unified Regulatory Framework

The EU AI Act establishes a structured regulatory framework applicable across all industries and AI applications within the European market. When navigating the EU AI Act, organizations must understand that it emphasizes a risk-based approach, ensuring that AI technologies comply with strict transparency and governance requirements.

Key Features of the AI Act:

• Risk-Based Approach: AI systems are classified based on their potential risk to human rights, health, safety, and societal impact, with specific provisions for high-risk AI systems.
• Strict Compliance Measures: Organizations must adhere to transparency and governance requirements, particularly for high-risk AI systems.
• Significant Penalties: Strict penalties apply for violations: up to 7% for non-compliance with prohibited AI practices, 3% for unmet obligations, and 1% for incorrect or incomplete information, all based on global annual turnover.
• Global Impact: The Act sets a precedent for AI regulation beyond Europe, influencing international AI governance frameworks, through a so-called "Brussels Effect".

Risk Categorization: Understanding Compliance Obligations When Navigating the EU AI Act

A critical component when navigating the EU AI Act is understanding its risk categorization system. AI systems are classified into different risk levels, and understanding these distinctions is essential for compliance:

• Prohibited AI Systems: Certain AI applications presenting unacceptable risks, such as mass surveillance or social credit scoring, are banned outright under the prohibitions section of the Act.
• High-Risk AI Systems: These require strict adherence to data quality, transparency, human oversight, and cybersecurity protocols.
• Limited-Risk AI Systems: Minimal compliance measures apply, such as transparency obligations for AI-generated content.
• General-Purpose AI Models (GPAI): Subject to additional regulations, particularly regarding systemic risk and intellectual property compliance.

It is important to note that these categories are not mutually exclusive, hence systems can fall into one or more categories at the same time. At Nemko Digital we help organizations understand and clarify which risk category they fall into when navigating the EU AI Act.

AI Literacy Rules: A New Organizational Mandate

Effective February 2, 2025, organizations providing and deploying AI must ensure their workforce possesses an adequate level of AI literacy. This mandate applies to AI providers, developers, and users, fostering responsible AI adoption through structured training programs.

At Nemko Digital we implement AI Literacy programs tailored to your organization. Our comprehensive approach helps companies assess, define, train, and maintain AI literacy across roles and teams as part of their journey in navigating the EU AI Act.

Key Roles involved in our AI Literacy Program:

• AI Leaders (Top Management): Define and drive AI strategy while ensuring compliance and accountability.
• AI Product Owners: Oversee AI-driven projects and ensure alignment with business goals.
• AI Developers: Build AI systems that meet ethical, security, and regulatory standards.
• AI Governance & Compliance Experts: Ensure adherence to legal frameworks and corporate policies.
• IT & Security Experts: Maintain AI system security and compliance with cybersecurity standards.

Organizations must integrate AI training into their workflows, facilitate cross-team sessions, and benchmark learning outcomes against industry standards to successfully navigate the EU AI Act requirements.

General-Purpose AI (GPAI): Regulatory Implications

From August 2, 2025, new provisions will apply to GPAI models, impacting their governance, intellectual property compliance, and systemic risk monitoring as part of navigating the EU AI Act.

Actionable Compliance Steps:

• Conduct thorough governance reviews and adjust internal AI governance practices accordingly.
• Perform detailed intellectual property assessments to ensure compliance with copyright and data sourcing laws.
• Stay informed about systemic risk thresholds and regulatory adjustments in the European Union Artificial Intelligence Act.
• Monitor the release of GPAI codes of practice by the European Commission and industry associations.

Forthcoming Regulatory Initiatives (2025-2027)

The AI Act is a so-called "living regulation", meaning continuous regulatory evolution occurs through additional legal instruments. When navigating the EU AI Act, organizations must stay informed about these developments.

Expected Developments and Standardization:

• Delegated Acts & Guidance Documents: The European Commission will issue additional compliance guidelines and codes of practice i.e. GPAI codes of practice.
• Harmonized Standards: The EU is expected to release harmonized AI standards by the end of 2025.
• Standardization Alignment: Companies complying with international standards (e.g., ISO/IEC 42001) can leverage this compliance to meet AI Act requirements.

Next Steps for Businesses and AI Providers

To successfully navigate the EU AI Act, organizations must take proactive steps:

• Conduct Internal AI Assessments: Evaluate existing AI systems against EU AI Act requirements, with special attention to regulated digital medical products and other sensitive applications.
• Define AI Literacy Strategies: Ensure staff at all levels understand their responsibilities in AI governance programs.
• Monitor Regulatory Updates: Stay informed about emerging standards and delegated acts from the European Commission.
• Engage with AI Compliance Experts: Seek expert guidance to streamline compliance processes, particularly beneficial for SMEs with limited internal resources.

The European Union Artificial Intelligence Act changes how we govern AI, demanding swift and strategic responses from all stakeholders involved. By prioritizing compliance readiness when navigating the EU AI Act, businesses can mitigate risks, become market-leading, and foster responsible AI innovation in 2025 and beyond.

For organizations seeking to implement comprehensive AI management systems or enhance their AI trust frameworks, our expertise in navigating the EU AI Act provides valuable guidance for ensuring compliance while maintaining competitiveness in the evolving AI landscape.