Global companies need to navigate the differing AI regulations in the European Union and Australia, with the EU’s AI Act setting stringent requirements based on risk levels, while Australia adopts a phased approach with proposed guardrails for high-risk AI. Understanding these regulations is essential for compliance and can provide a competitive edge in the tech industry.
Germany is moving forward with the implementation of the EU AI Act, designating the Federal Network Agency (BNetzA) as the central authority for monitoring compliance and promoting innovation. The draft AI Market Surveillance and Innovation Promotion Act aims to enhance existing regulatory frameworks and provide businesses with clear guidance on AI governance.
On August 2, 2025, the second stage of the EU AI Act came into force, regulating general purpose AI models and introducing obligations for transparency and accountability. This legislation marks a significant step in establishing a global framework for the governance of AI technology, aimed at ensuring safety and ethical use.
The EU AI Act establishes a risk-based framework that categorizes AI systems based on their potential harm, imposing strict regulations on high-risk and prohibited uses to enhance human oversight and cybersecurity. This legislative approach aims to prevent existential threats from super AI while promoting responsible innovation and safeguarding human rights.
The EU AI Act has come into effect, imposing compliance requirements for AI systems, especially high-risk ones, with penalties starting as of August 2, 2025. Companies must prepare for full implementation by August 2, 2027, and engage proactively with regulators to navigate the new landscape.
Dr. Cari Miller discusses the differences between the EU AI Act and the US AI Action Plan, highlighting that the EU framework is much more risk-aware and imposes binding obligations on high-risk AI systems. She emphasizes the importance of balancing innovation with regulation, particularly in AI procurement, to ensure responsible practices in the rapidly evolving technology landscape.
On June 22, 2025, Texas Governor Greg Abbott signed the Texas Responsible AI Governance Act (TRAIGA) into law, asserting the state’s right to legislate on consumer protection and AI use. The law aims to promote responsible AI development while safeguarding individuals from associated risks and ensuring transparency in AI interactions.
The EU is being urged to delay the rollout of the AI Act due to missing frameworks and legal uncertainties that could hinder AI innovation. Industry group CCIA Europe warns that a rushed implementation may jeopardize the bloc’s economic ambitions and its competitiveness in the AI sector.
The European Union’s Artificial Intelligence Act, often referred to as the ‘new GDPR’, has come into effect, marking a significant shift towards the regulation of AI technologies. This comprehensive legislation aims to ensure that AI systems are safe, respect fundamental rights, and promote trustworthy innovation within the EU market.
The recent announcement from the EU Commission confirming that there will be no delay to the EU AI Act has sparked significant reactions, with many claiming both failure and victory. Companies are urged to take action now to ensure compliance, particularly with upcoming deadlines for General Purpose AI Models and AI Systems providers.