EU AI Act Compliance

The rapid spread of artificial intelligence technologies in business processes creates not only technological opportunities for companies but also new legal responsibilities. The Artificial Intelligence Act (AI Act) adopted by the European Union introduces comprehensive rules on the development and use of AI systems, and requires companies to reassess the way they use technology.

The AI Act takes a regulatory approach that assesses AI systems according to the level of risk they carry and imposes different obligations accordingly. The regulation may affect not only companies that develop AI but, in certain cases, also businesses that use AI systems.

For this reason, the key issue for companies is not just the question “Do we use AI?”. What really needs to be assessed is the nature of the AI system used, the purpose for which it is used, what data it processes and what legal obligations it brings with it.

Why Has the AI Act Become Important for Companies?

AI systems are now used in many areas, from customer service to human resources and from financial analysis to health technologies.

However, as artificial intelligence takes on a greater role in decision-making, new legal needs have emerged, such as transparency, safety, human control, data governance and the protection of fundamental rights.

The main aim of the AI Act is to support the innovative use of artificial intelligence while protecting individuals’ fundamental rights, safety and legal interests.

Which Companies Does the AI Act Affect?

The AI Act is not a regulation that concerns only technology companies developing AI software. Many businesses that use AI systems in their commercial activities may also face compliance requirements.

An AI Act assessment is particularly important for companies operating in the following areas:

Technology companies developing AI-based software, SaaS platforms, businesses using automated decision-making systems, companies using AI in recruitment, organisations using customer analytics systems and businesses providing services to the European Union market.

The fact that a company based in Türkiye is physically located outside the EU does not always mean that it falls outside the scope of the AI Act. Placing a system on the EU market, or the use of its output within the EU, may in some cases bring the regulation into play.

The AI Act’s Risk-Based Approach

One of the main features of the AI Act is that it does not treat all AI systems in the same way, but sets out different obligations depending on the level of risk.

The legal approach is determined by assessing the intended purpose of an AI system, its impact on individuals’ rights, its role in decision-making and the likelihood of harm it may cause.

Because of this approach, a company first needs to identify the AI systems it uses or develops and analyse which risk category they may fall into.

Prohibited AI Practices

Under the AI Act, certain AI practices are considered to pose an unacceptable risk and are prohibited.

In this context, certain uses of AI that could seriously infringe fundamental rights, that are aimed at manipulation or that could have unacceptable effects on individuals have been restricted.

Companies need to assess from this perspective not only the systems they develop but also the third-party AI tools they use.

Compliance for High-Risk AI Systems

One of the most important categories under the AI Act is high-risk AI systems.

Such systems may arise in areas of use that can have a significant impact on individuals’ education, working life, financial opportunities, access to healthcare or fundamental rights.

For high-risk systems, more extensive obligations apply, such as risk management, technical documentation, record-keeping, human oversight and safety processes.

Steps Companies Should Take Towards AI Act Compliance

AI Act compliance is not something that is completed by preparing a single document. Companies need to assess their use of technology as a whole.

The first step is to identify all the AI systems the business uses. It should be established which department uses which AI tool, what data the system works with and which decisions it affects.

Next, the risk level of the systems in use should be assessed and internal AI use policies should be put in place.

AI Inventory and AI Use Map

One of the most important preparatory steps for companies is to create an AI inventory.

Many businesses do not know all the AI tools their employees use. Yet AI systems used without control can create risks for data security, confidentiality and intellectual property rights.

With an AI inventory, a company can identify which systems it uses, the providers of those systems, the data flows and the points of legal responsibility.

The AI Act and Data Protection Obligations

Since AI systems often work with large amounts of data, there is a strong link between AI Act compliance and data protection processes.

Issues such as the processing of personal data, data security, automated decision-making and informing users should be assessed from the point of view of both AI law and data protection law.

In particular, where customer or employee data is transferred to AI systems, companies may need to review their existing data processing activities.

AI Act Risks in the Use of Generative AI

The spread of generative AI tools such as ChatGPT in companies has created new compliance needs.

Employees entering company information into AI tools, the commercial use of content generated by AI and the protection of third-party content are among the important legal issues.

For this reason, it is important for companies to set up employee use policies, confidentiality rules and standards for AI use.

Human Oversight and Responsibility Under the AI Act

Using AI systems does not completely remove human responsibility from decision-making.

Especially in decisions that affect individuals’ rights, it is important to maintain human control, to evaluate the system’s outputs and to intervene where necessary.

Companies need to treat artificial intelligence not merely as a tool that works automatically, but as a technology that entails legal responsibility.

The Role of Contracts in AI Act Compliance

Most of the AI services companies use are obtained from third-party providers.

For this reason, contracts with AI providers need to set out clearly matters such as data use, security, scope of service, allocation of liability, audit rights and intellectual property rights.

Poorly drafted contracts may leave companies unprotected against the legal risks that may arise from the use of AI.

AI Act Preparation for Companies in Türkiye

For companies operating in Türkiye that have commercial relations with the European Union, AI Act compliance can provide a significant competitive advantage.

Businesses that develop digital products, export software or operate in the European market can reduce future compliance costs by assessing their AI processes now.

Companies that prepare early for AI regulation not only reduce their legal risks; they also come to be seen by customers and business partners as trustworthy users of technology.

AI Act Compliance Advisory

AI Act compliance is interdisciplinary work that requires law, technology, data governance and company processes to be assessed together.

Analysing the AI systems a company uses, identifying the risks, preparing the necessary policies and contracts and setting up compliance processes are important for the sustainable use of AI.

In the age of artificial intelligence, legal compliance is not an obstacle to technological progress; it is one of the basic elements of a secure and sustainable digital transformation.