Gabrielle Dunbar

For North American B2B technology companies with their sights set on expanding into European markets, a major new regulation has emerged that cannot be ignored - the European Union's new AI Act. This landmark legislation, once implemented, will govern the development and use of artificial intelligence systems across the 27-nation EU bloc. 

At the core of the AI Act is a risk-based classification system that designates certain AI applications as "high-risk" based on their use case, such as in critical infrastructure, education, or employment. These high-risk systems will face strict requirements around training data, documentation, human oversight, robustness, accuracy, and more. 

Crucially, any company - regardless of where they are headquartered - that develops a high-risk AI application intended for the EU market will need to appoint an EU-based representative. They'll also be subject to a range of compliance obligations like conducting conformity assessments, establishing risk management systems, and aligning data governance practices with the regulation. 

For North American B2B tech firms targeting EU expansion, getting ahead of these AI governance requirements is essential. Being able to clearly assess whether your AI-powered products and services fall under high-risk designations, and having robust compliance frameworks in place, will be table stakes for accessing the European market.  

The EU AI Act is the tip of the iceberg too. A patchwork of regional and national AI governance initiatives is taking shape in major markets like the US, UK, China, and Canada as well. Multinational companies will need to stay abreast of this evolving regulatory landscape and strive for interoperability across different compliance regimes - no easy feat. 

Looking further ahead, those that prioritise ethical and trustworthy AI development aligned with evolving rules may be better positioned to build lasting customer confidence amidst intensifying scrutiny of AI's societal impacts. For many, getting AI governance right won't just be a regulatory checkbox, but an opportunity to develop a sustained competitive advantage. 

From a business development perspective, this environment is likely to be of interest to journalists, analysts and conference producers, as well as across social media. Sharing insights with third parties will generate opportunities to build awareness, trust credibility and validation, which in turn can make selling easier.