The generative AI industry is currently facing significant regulatory scrutiny and reputational challenges, particularly for companies like Meta, Microsoft, and Google. These developments are reshaping the investment landscape as businesses must balance ethical obligations with profitability while navigating a rapidly evolving legal environment.
The EU is launching consultations to develop guidelines and a Code of Practice focused on transparency obligations for certain AI systems, including those related to biometric categorization and emotion recognition. Stakeholders are invited to share their views until October 2nd, with the drafting process for the Code expected to continue until June 2026.
Compliance teams in the financial sector are facing overwhelming volumes of communications as regulators demand increased vigilance. The optimal approach combines AI’s capabilities in pattern recognition with human oversight, ensuring that compliance officers can apply contextual judgment to flagged communications.
On July 10, 2025, the European AI Office published the final version of the Code of Practice for providers of General Purpose AI models under the EU AI Act, focusing on transparency, copyright compliance, and systemic risk management. This voluntary tool aims to help providers demonstrate compliance with the EU AI Act while imposing extensive obligations and guidelines for managing compliance and audit structures.
The article discusses how the EU AI Act is influencing channel vendors in terms of compliance and trust, emphasizing the importance of data integrity and responsible AI innovation. It highlights the need for collaboration among vendors and partners to ensure that compliance is an ongoing commitment rather than a mere checkbox exercise.
The EU AI Act Newsletter discusses concerns regarding compliance with the new AI regulations, particularly focusing on the European Commission’s consultation for transparent AI systems and the backlash from German privacy watchdogs. It also highlights potential compliance issues with OpenAI’s GPT-5 model and the EU AI Office’s staffing challenges in implementing the Act.
The European Union’s Artificial Intelligence Act introduces a comprehensive legal framework for AI, mandating new obligations for general-purpose AI systems. As of August 2, 2025, organizations must comply with specific requirements related to the deployment and development of these AI models, which include transparency and risk assessment measures.
This series explores how explainability in AI helps build trust, ensure accountability, and align with real-world needs. In this part, we reflect on the broader requirements of responsible AI, emphasizing that explainability is a dynamic process essential for fostering better decision-making and governance.
As AI technology rapidly evolves, the urgent need for effective governance has become apparent, particularly regarding its implications for human rights. The current fragmented regulatory landscape highlights the necessity for binding agreements and the inclusion of civil society voices to ensure that AI development prioritizes human rights over national interests and corporate profits.
The EU AI Act requires that any entity placing an AI model on the EU market determines if it qualifies as a general-purpose AI model (GPAI). This classification is essential for understanding the applicable provisions under the Act, which define a GPAI model as one capable of performing a wide range of tasks and integrating into various systems.