EU AI Act mandates compliance for AI use in the EU, starting Feb 2025. Noncompliance risks 35M euro fines, impacting all businesses using AI. Act categorizes AI systems by risk and prohibits harmful practices like deceptive AI, social scoring, and predictive policing. CTOs/CIOs must prioritize risk assessments and governance protocols to align with regulations and enhance innovation. Key steps: comprehensive audits, governance implementation, legal engagement, and vendor compliance checks.