The EU AI Act in 2026: what global companies must fix first

As the European Union prepares to implement the EU AI Act in 2026, global companies operating within or interacting with the EU market face urgent challenges to comply with the comprehensive new regulatory framework. The Act aims to ensure trustworthy and lawful use of artificial intelligence technologies.

Understanding the core requirements of the EU AI Act

The EU AI Act establishes stringent standards for transparency, accountability, and risk management in AI systems. It categorizes AI applications based on potential risks to fundamental rights and safety, requiring different compliance measures accordingly. For global companies, understanding how their products and services fit within these risk categories is the first step to addressing compliance obligations. High-risk AI systems, such as those used in critical infrastructure or biometric identification, are subject to strict conformity assessments and reporting duties.

Data governance and quality control as priorities

One of the main pillars of the EU AI Act is the emphasis on data governance. Companies will need to demonstrate that datasets used to train AI models are accurate, complete, and free from bias to minimize discriminatory outcomes. Global organizations must implement robust processes to manage data quality, documentation, and security. This often entails revising existing data management systems to align with the EU’s expectations for traceability and auditability, which requires significant operational adjustments.

Transparency and user information requirements

The Act mandates clear communication to users when they are interacting with AI systems, particularly in sectors with high societal impact. Global companies must ensure that AI-driven decisions are explainable and that users receive appropriate information about the functioning and limitations of AI applications. This aspect challenges firms to integrate technical explainability with accessible user interfaces and documentation. Moreover, transparency extends to disclosing AI system capabilities and potential risks, which can affect marketing and product development strategies.

Strengthening conformity assessment and post-market monitoring

Compliance under the EU AI Act is not a one-time effort but requires ongoing vigilance. Before deploying AI systems classified as high risk, companies must conduct conformity assessments demonstrating adherence to legal requirements. After market entry, continuous monitoring of AI system performance and reporting of incidents or malfunctions become mandatory. Global companies will need to establish dedicated compliance teams and technical mechanisms to support these functions. This proactive approach reduces potential regulatory sanctions and preserves consumer trust.

Adapting internal policies and international collaboration

Since the EU AI Act applies not only to companies within the EU but also to those outside the bloc offering AI-related products or services to EU users, multinational firms must adapt internal policies and contractual terms accordingly. This may involve revising supplier agreements, investing in compliance training, and engaging legal counsel specialized in European data and AI law. Furthermore, cooperation with regulatory bodies and alignment with global AI standards will facilitate smoother transitions and operational resilience in evolving regulatory landscapes.

Overall, the introduction of the EU AI Act signifies a landmark shift in AI governance with far-reaching implications for global companies. While challenges in compliance are substantial, proactive adaptations focusing on data governance, transparency, and conformity can enable firms to not only meet regulatory demands but also enhance ethical AI deployment. As the 2026 deadline approaches, companies that prioritize these foundational areas will be better positioned to navigate the complex regulatory environment and foster trust with European users and regulators alike.

Frequently Asked Questions about EU AI Act

What is the main objective of the EU AI Act?

The EU AI Act aims to create a harmonized legal framework to regulate artificial intelligence technologies, ensuring safety, transparency, and respect for fundamental rights within the European Union.

Which global companies are affected by the EU AI Act?

Any company, regardless of its location, that develops or markets AI systems within the EU or provides AI-related products or services to EU users must comply with the EU AI Act.

How does the EU AI Act classify AI systems?

The EU AI Act categorizes AI systems based on risk levels, such as minimal risk, limited risk, and high risk, with different regulatory obligations depending on the classification.

What are the key compliance requirements under the EU AI Act for high-risk AI?

High-risk AI systems under the EU AI Act must undergo conformity assessments, ensure data quality, provide transparency, implement risk management systems, and maintain post-market monitoring.

When will the EU AI Act come into full effect?

The EU AI Act is expected to be fully enforceable by 2026, giving companies time to adjust their AI systems and processes according to the new regulatory standards.