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Breaches of the EU’s ground-breaking General Data Protection Regulation (GDPR) can cost companies substantial sums and huge reputational damage. Now some are warning that the implementation of the EU’s AI Act, the first phase of which begins in February 2025, will be just as far-reaching, and could potentially lead to similar numbers of cases. Meanwhile, increasing digital regulation is refocusing boards’ attention on data governance, including GDPR compliance.
The AI Act is expected to set a new global standard that others will follow, so even organizations that are not directly in scope should be paying attention.
In a white paper published in October, the Information Systems Audit and Control Association (ISACA) wrote: “The act is touted as the first comprehensive AI law in the world. Given the broad and thorough nature of the act, it is possible that future AI laws and regulations could be modelled off the EU AI Act, similar to what happened with the EU’s [GDPR].”
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