Artificial Intelligence is quickly becoming a staple part of our everyday lives. And the workplace is no exception. Unlike the rise of social media, AI platforms instantly provided functionality that could change the way we work, whether in strategy creation, content generation, or to optimise processes. The likes of ChatGPT, Gemini, and Claude are now a frequent tab open.
With such rapid growth and uptake, it is only natural that transparency rules have been introduced across the UK and Europe. Alexandra Clapp, Partner in our Corporate & Commercial Law team, recently published an article for BDA titled “What is the EU AI Act?“, where she explains what the new EU AI Act is and how it will impact businesses.
Key takeaways from the article
In the article, Alexandra covers everything you need to know about the new legal framework under EU law. Here are a few of the key points.
Which businesses does this affect?
Because the title of the act includes EU, it would be easy to believe UK businesses are exempt from following the rules. The article highlights that you don’t need to have a business in the EU to have to comply with the rules and shares which businesses will need to think about their impact.
The act comes into affect August 2026
You don’t have long to make sure you are compliant as the next compliance milestones arrive in August. Alexandra details what you need to do before then to ensure you are following the rules in time.
Compliance goes beyond technology
Since AI is a technology we use, it is natural to think compliance lies with your IT department. But it is wider than that.
Alexandra’s article highlights that compliance also affects:
- Staff training
- Internal governance
- Supplier relationships
- Client contracts
- Risk management
You need to understand how AI is being used in your organisation as a first step.
The cost of getting it wrong
The act includes significant penalties for non-compliance, which emphasises why you shouldn’t assume the regulations only apply to the EU or to major organisations.
If you are using AI in your workplace, you need to understand these regulations and putting steps in to ensure compliance. If you’re not sure what steps to take, Alexandra breaks down the actions you should be taking now.
How can we help?
The EU AI Act is being introduced in stages, with transparency requirements coming into force in August 2026. Understanding whether your organisation falls within scope is an important first step.
For a detailed breakdown of the legislation, who it affects, and the practical steps businesses should be taking, read Alexandra Clapp’s full guide on the DBA website.
If you would like help ensuring you are compliant or would like tailored legal advice for your business, contact Alexandra Clapp today. Call her on 01202 725422 or email a.clapp@hklaw.uk.
