EU AI Act: navigating the future of AI regulation

As artificial intelligence continues to gain importance, the European Union is proactively implementing measures to ensure its ethical and responsible use.

One significant outcome is the EU AI Act, which came into effect on August 1, 2024. This pioneering legislation aims to regulate AI development and deployment throughout Europe.

Here at The Reference, we are not simply spectators; we are engaged contributors in this AI transformation. Let us explain what this means for businesses and how we can help you navigate these exciting yet complex changes.

Who is affected? 

Asking yourself, "Is this relevant to my business?" The answer is likely yes. The Act affects all entities—from large corporations to small startups. If you belong to any of these groups, you are impacted: 

• Developers: If your company builds AI systems. 

• Commercializers: If you bring AI products or services to market. 

• Users: If you use AI in your daily operations. 

• Importers and Distributors: If you are part of the supply chain for AI systems in the EU. 

Here at The Reference, we fit into multiple categories. Primarily, we are users—just like many of you—since we work with AI tools like OpenAI GPT. Additionally, we act as commercializers by offering AI-driven consultancy and services. Occasionally, we also serve as distributors when deploying our own- or third-party AI systems. We recognize that businesses may have concerns about adhering to these new regulations. Our goal is to simplify that process for you. 

Heavy penalties for non-compliance? Or an opportunity for responsible innovation?

Yes, there are fines for non-compliance, and they can be substantial— Penalties range from €7.5 million or 1.5% of turnover for minimal risk violations, up to €35 million or 7% of global turnover for unacceptable risk infractions.

The Act offers some flexibility to SMEs and startups by lowering the maximum fines. But instead of focusing on the penalties, think of this as an opportunity to lead the way in responsible AI innovation.

By aligning with the EU AI Act, businesses can build greater trust with customers and stakeholders, positioning themselves as leaders in a new, regulated AI era.

For minimal risk systems, even though we are not legally required to, we hold ourselves to high ethical standards. We safeguard data privacy, prevent bias, and stay transparent about what our AI can and cannot do—because that’s simply good practice. 

For businesses deploying high-risk AI, there is a bit more oversight involved—like human oversight, performance monitoring, incident reporting, and ensuring compliance with provider guidelines.  

In addition, we help automate generative AI for content creationand maintenance, support customers in implementing composable commerce architectures, and transition into headless CMS solutions.

We understand that creating, managing, and updating content can be time-consuming and costly. Therefore, we aim to provide an end-to-end solution to tackle both the technical and content challenges of migrating to new platforms, significantly accelerating this transition with the use of generative AI. 

Our goal is to keep you ahead of new developments, ensuring that your AI strategies are innovative, compliant, and cutting-edge. We guide you through this transformation, allowing you to focus on innovation while we handle the complexities of compliance and integration.