EU AI Act and AI Governance:

What Businesses Need to Know

The EU AI Act establishes a risk-based regulatory framework for artificial intelligence systems operating within or affecting the European Union.

Organisations using AI tools — including generative AI — must understand how governance frameworks support regulatory alignment.

Risk-Based Classification Under the EU AI Act

The EU AI Act categorises AI systems by risk level:

  • Unacceptable risk

  • High risk

  • Limited risk

  • Minimal risk

Governance frameworks help organisations document risk classification decisions and implement proportionate controls.

AI Governance and Regulatory Readiness

While the EU AI Act applies directly within the EU, AI governance frameworks are relevant globally.

International businesses benefit from structured governance that aligns with:

  • EU AI Act principles

  • Data protection requirements

  • Global AI safety standards

  • Accountability and transparency expectations

A documented governance structure reduces regulatory exposure and enhances organisational credibility.

Is AI Governance Only Relevant in the EU?

No.

AI governance is relevant internationally.

Organisations operating in the UK, US, EU, APAC and other regions increasingly require documented oversight of AI systems to meet emerging regulatory expectations and stakeholder demands.

Structured governance supports global operations.

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