UK Firms Overconfident on EU AI Act as Fines Mount
UK businesses report the highest confidence in their readiness for the EU AI Act but face more fines and contract disruptions than their counterparts in Germany and France, according to new research.
Study Overview
The study, commissioned by software company Conga, highlights gaps between self-assessed preparedness and actual compliance outcomes. It points to quoting and contracting systems as a growing source of risk.
The findings emerge as EU institutions debate changes to the implementation schedule for the EU AI Act, with lawmakers considering extending timelines for high-risk systems, including those involved in pricing and contracting.
Survey Insights
Conducted in September, the survey encompassed 1,501 decision-makers in revenue operations, sales, and legal functions across the UK, Germany, and France. Key findings include:
- 89% of UK business leaders believe their organizations are ready for the EU AI Act, compared to 82% in Germany and 68% in France.
- However, 30% of UK respondents reported fines linked to regulatory changes in the past year, the highest proportion among the three countries.
- 40% of UK leaders indicated their organizations had to renegotiate contracts due to regulatory pressures.
Investment in Compliance
The research indicates that confidence in compliance does not always translate into positive outcomes. UK firms have reported higher investments in compliance headcount compared to their continental peers, with 44% of UK leaders expanding compliance staff, versus 38% in Germany and 31% in France.
Notably, 18% of UK business leaders were unsure whether AI was integrated into their contract and quoting systems, highlighting limited visibility over tools that influence revenue.
Compliance Ownership and Responsibility
The survey revealed that only 19% of UK respondents shared compliance ownership across legal, sales, and revenue teams. Most organizations still concentrate responsibility within a single function or maintain a fragmented approach.
The EU AI Act will impact UK businesses operating in the EU or signing contracts with EU partners. It will also reach firms deploying qualifying systems within their operations, even if those systems are managed from outside the EU.
Quoting and Contracting Under Scrutiny
The research emphasizes the importance of configure, price, quote, and contract lifecycle tools, which often utilize AI models to suggest prices, draft language, or flag risks. Spencer Earp, SVP EMEA at Conga, notes that there is a significant gap between perceived readiness and actual preparedness.
Governance Gaps and AI Integration
As many firms embed AI tools into sales and contracting workflows, the need for oversight and auditability becomes critical. Charlie Bromley-Griffiths, Senior Legal Counsel at Conga, stresses that while embedding AI can enhance efficiency, organizations must ensure AI outputs are explainable and aligned with regulations like the EU AI Act.
Some industrial users view regulation as an opportunity to increase customer trust in AI systems, with Nils Heblich-Menke from Bosch stating, “We embrace the EU AI Act because it provides a level of trust and regulation to foster innovation.”
Conclusion
As the EU AI Act looms, UK firms must reconcile their confidence with the reality of compliance. Effective governance and transparency will be essential to navigate the complexities of AI integration while ensuring adherence to evolving regulations.
