EU taps AI experts to develop compliance framework for AI regulations

The European Commission has appointed a group of AI specialists to outline how businesses should comply with forthcoming AI regulations.

The group includes prominent figures like AI pioneer Yoshua Bengio, former UK government adviser Nitarshan Rajkumar, and Stanford University fellow Marietje Schaake.

They will oversee four working groups, each focusing on different aspects of AI governance — transparency and copyright, risk identification and assessment, technical risk mitigation, and internal risk management for general-purpose AI providers.

These working groups are tasked with drafting the EU AI Act’s “code of practice,” which is expected to be introduced in 2024. The code will outline exactly how companies can comply with the broad set of regulations.

The working groups are set to convene four times, with a final meeting slated for April 2025. Following that, the completed code of practice will be presented to the European Commission for approval, with compliance assessments beginning in August 2025.

Implications for the AI industry

This development holds significant implications for AI companies.

For instance, the transparency and copyright working group is expected to play a key role in shaping AI governance, particularly by setting standards for the disclosure of data used to train AI models.

This could force companies to share sensitive information, raising concerns over intellectual property and competitive advantage.

On the other hand, such a push for transparency could also drive wider AI adoption, according to Sharath Srinivasamurthy, associate VP of research at IDC.

Srinivasamurthy pointed out that key factors holding back enterprises from fully embracing AI include concerns about transparency and data security.

By addressing these issues through clearer guidelines, the EU’s efforts could help alleviate those concerns, encouraging more businesses to adopt AI technologies with greater confidence.

“Big tech companies have a major role to play in instilling confidence among enterprises by being as transparent as possible while not compromising on their business interests,” Srinivasamurthy said.  “Alleviating concerns on transparency and data security would be, in turn, beneficial to big tech companies as it will eventually lead to higher AI adoption.”

However, the EU AI Act’s risk-based classification of AI applications and strict compliance requirements pose significant challenges for businesses, according to Prabhu Ram, VP of industry research at Cybermedia Research.

“As AI continues to evolve rapidly, companies must proactively assess their AI systems, mitigate risks, and ensure compliance with the Act’s provisions to avoid steep fines of up to 7% of global revenue,” Ram said. “The Act’s impact will extend beyond the EU, affecting any company — including major players like Google and Microsoft — that interacts with the European market.”

Balancing innovation and regulation

A major concern surrounding the AI Act is its potential to stifle innovation. As the EU delves deeper into developing the code of conduct, worries about overregulation are likely to grow.

Although the Act aims to enhance accountability and safety in AI development, Ram pointed out that it may inadvertently stifle innovation, particularly in areas such as AI model training and intellectual property management.

“As companies grapple with compliance costs and potential legal liabilities, the challenge will be to foster an environment where innovation can thrive without compromising ethical standards,” Ram added.

Srinivasamurthy is optimistic, suggesting that “any new technology that is disruptive will go through this phase of figuring out how much regulation is good and how much is not.” Including major tech companies in the working groups may be crucial for balancing regulation and innovation. Representatives from leading firms like Google and Microsoft will join the groups, alongside nonprofit organizations and academic experts, according to Reuters.