Our friends in Feltech are working on the AI Leaders Project, and they have written about the EU AI Act. You can read their post here: https://feltech.ie/the-eu-artificial-intelligence-act-and-its-implications-for-business-education/
The European Union has taken a global lead in regulating artificial intelligence with the EU Artificial Intelligence Act. This is the first wide-ranging legal framework anywhere designed to govern how AI is used across society, business and public life.
The AI Act takes a risk-based approach to AI systems, categorising them from minimal risk to high risk depending on their potential impact on people’s rights, safety and fairness.
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Unacceptable risk systems – those capable of harms like social profiling or behavioural manipulation will be prohibited entirely.
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High-risk systems – for example, AI involved in recruitment, credit decisions or customer screening face stricter requirements for testing, transparency and human oversight.
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Limited and minimal risk tools will still need transparency and accountability safeguards, but with lighter obligations.
These rules will be rolled out in phases, beginning with initial prohibitions in early 2025 and full compliance milestones for high-risk systems by 2026.
For organisations using or building AI, the Act is more than regulatory compliance, this is a strategic opportunity.
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Governance and accountability: Companies will need clear policies for how AI is selected, deployed and monitored — from risk assessments and documentation, to human review of decisions made by AI systems.
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Transparency and trust: Customers and employees will increasingly expect clarity about when they are interacting with AI — and what data is being used.
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Competitive advantage: Firms that align their AI strategy with ethical and legal best practice now will be well positioned to expand in the EU market and build stronger trust with partners and clients.
The Act also highlights a growing need for AI literacy across the workforce. It’s not enough for organisations to adopt tools, people must understand how they work, what their limitations are, and how to govern them responsibly.
That’s where educators and business leaders play an important role. Preparing future managers and teams to think critically about AI’s opportunities and its risks will be essential for long-term organisational resilience.
Find out more about the AI Leaders Project on the website: https://aileaders-project.eu/
