Navigating AI Compliance: A Guide for Startups
In today's rapidly evolving AI landscape, startups must understand and adhere to new regulatory frameworks like the EU's AI Act. Compliance is no longer optional—penalties for non-compliance can reach up to €35 million or 7% of a company’s annual revenue. For any startup using, developing, or distributing AI solutions, establishing a clear AI compliance strategy is critical. This blog post will guide you through practical steps for AI compliance and use the example of a fintech startup, CrediScore-AI, to illustrate how to navigate key compliance steps—from inventory to risk assessment.
The AI Act applies to every company that develops, uses, or distributes AI systems in any of the 27 EU member states. Startups, especially those working with AI-driven products, must be aware of this regulation. Non-compliance comes with severe financial consequences, making it essential to implement compliance measures from the start.
See also: SMEs in the AI Era: The Impact of EU AI Act
Table of Contents:
1. Start with an AI Inventory
2. Define Your Company’s Role Under the AI Act
3. Assess AI System Risk Levels
4. Ensure AI Literacy Across the Organization
5. Fulfill Additional Obligations Based on Risk Levels
Preparing for the AI Future
Important: The content of this article is for informational purposes only and does not constitute legal advice. The information provided here is no substitute for personalized legal advice from a data protection officer or an attorney. We do not guarantee that the information provided is up to date, complete, or accurate. Any actions taken on the basis of the information contained in this article are at your own risk. We recommend that you always consult a data protection officer or an attorney with any legal questions or problems.