AI Regulation: Preparing for 2025
As organizations brace for the evolving landscape of AI compliance frameworks and regulations over the next 12-18 months, it is crucial to understand the implications of these changes. Governments worldwide are advancing legislation to address the risks and usage of AI, presenting significant challenges in governance, risk management, and compliance planning for security executives.
The EU AI Act: A New Standard
The EU AI Act marks a critical development in AI regulation, with its phased rollout beginning in February 2025. Organizations operating within the EU will need to ensure that employees involved in AI use, deployment, or oversight possess adequate AI literacy by February 2, 2025. This requirement sets the stage for compliance, echoing the stringent measures seen in the GDPR.
From August 1, 2025, any new AI models based on GPAI standards must comply with the act. Non-compliance could result in hefty fines, reaching up to EUR 35 million or 7% of worldwide annual turnover, whichever is higher.
The Role of Security Awareness Training
Many organizations remain in the early stages of defining their AI usage policies. Few have implemented enforceable policies to govern AI use internally, highlighting the need for enhanced security awareness training programs. Dynamic and automated training assignments could equip employees to understand and mitigate AI-related risks effectively.
High-Risk Applications and AI Asset Management
As the EU AI Act progresses, later phases will introduce stricter requirements around prohibited and high-risk AI applications. Organizations will face governance challenges in maintaining visibility and control over AI assets, especially with the rise of Shadow AI—unsanctioned AI tools used without security oversight.
The management of AI asset inventories will be crucial, particularly with embedded AI functionalities in various SaaS platforms. Analysts emphasize the complexities involved in tracking these assets, stressing the importance of robust processes for inventory, monitoring, and management.
Understanding AI Use Cases
Compliance extends beyond identifying AI tools; organizations must evaluate how these tools are used and the data shared. For example, using generative AI to summarize sensitive documents poses different risks compared to drafting marketing content. Gaining visibility into these use cases will be essential as AI usage expands.
The EU AI Act and Broader Governance
The EU AI Act is one part of a larger governance puzzle for organizations in 2025. Pressure to understand, manage, and document AI deployments will increase, necessitating collaboration across security, compliance, and technology teams.
Three Steps to Organizational Success
To prepare for the regulatory momentum, organizations should consider the following steps:
- Establish an AI Committee – Create a cross-functional team that includes governance representatives, security, and business stakeholders.
- Get Visibility – Understand what AI tools employees are using and their specific applications.
- Train Users – Equip employees with knowledge of AI risks and compliance requirements.
With a proactive approach, organizations can build scalable AI governance frameworks that ensure compliance while fostering responsible AI innovation.
