EU

What the EU AI Act Means for US Tech Companies

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EU AI Act, effective Aug 2026, regulates AI, affecting US tech firms in Europe. It classifies AI into four risk categories with varying compliance obligations. High-risk AI requires extensive documentation; firms must prepare proactively. Phenom, a compliant startup, emphasizes early adaptation and client education for success. Non-compliance poses significant risks, necessitating awareness and preparation.

https://technical.ly/civics/how-to-comply-eu-ai-act-guest-post/

AI Laws Across U.S. and Global Practice Areas

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AI laws are evolving globally and in the U.S., addressing risks and ensuring public safety as AI adoption increases. The EU AI Act categorizes AI systems into four risk levels, imposing stricter compliance for high-risk applications and banning those with unacceptable risks. In the U.S., federal agencies provide regulatory guidance, but comprehensive federal law is lacking. Notable state laws, like Colorado's and Utah's, are emerging to govern AI use and protect consumer rights. As AI reshapes legal practice, attorneys must balance innovation with ethical considerations and regulatory compliance.

https://legal.thomsonreuters.com/blog/navigating-ai-laws-and-regulations-across-practice-areas/

European Parliament Committee Recommends Commission to Propose EU Directive on Algorithmic Management

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EU Parliament's Employment Committee recommends a directive on algorithmic management, defining it as automated systems affecting workers' performance and conditions. A Commission study highlights concerns about existing protections and outlines proposed requirements for transparency and human oversight. The draft directive, not yet endorsed, will undergo legislative procedures with potential implications for employers across the EU, including prohibitions on certain data processing related to workers. If approved, formal proposals could emerge in 2026 or 2027.

https://www.insideprivacy.com/european-union-2/european-parliament-committee-recommends-commission-to-propose-eu-directive-on-algorithmic-management/

Microsoft Exec Admits It ‘cannot Guarantee’ Data Sovereignty

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Microsoft cannot guarantee data sovereignty for its French customers, admitting it must comply with U.S. government data requests under the Cloud Act. During a Senate hearing, company executives acknowledged they would need to share information if compelled, despite safeguards in place to resist unfounded requests. This raises concerns about privacy and security for EU users, prompting discussions on increasing European digital sovereignty.

https://www.theregister.com/2025/07/25/microsoft_admits_it_cannot_guarantee/

Using Artificial Intelligence? Prepare Now for the EU AI Act

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EU AI Act regulates all AI systems used in the EU, imposing strict compliance for high-risk systems, including those affecting employment. Key requirements include AI literacy training, prohibition checks, technical measures, updated policies, data quality management, human oversight, continuous monitoring, recordkeeping, and informing affected individuals. Non-compliance can result in hefty fines. Organizations should assess current AI systems for regulatory adherence and begin the compliance process immediately.

https://www.staffingindustry.com/editorial/cws-30-contingent-workforce-strategies/using-artificial-intelligence-prepare-now-for-the-eu-ai-act

NIS2: Why Are Firms Struggling to Comply?

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Many organizations struggle with compliance to the EU's NIS2 Directive due to complex supply chains, outdated infrastructure, and insufficient cybersecurity investment. ENISA warns that several critical sectors, like ICT and healthcare, face significant challenges. In contrast, industries such as electricity and banking show more cybersecurity maturity. Additionally, inconsistent national regulation and capacity issues hinder compliance efforts across EU member states. Recommendations for improving compliance include conducting risk assessments, establishing clear asset visibility, appointing NIS2 leaders, and implementing strong incident response plans.

https://www.itpro.com/business/policy-and-legislation/nis2-why-are-firms-struggling-to-comply

The EU AI Act: What You Need to Know

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EU AI Act Summary: The EU AI Act, adopted by the European Parliament, regulates AI development and use, balancing adoption with individual rights. It categorizes AI risks as unacceptable, high, and low/minimal. Unacceptable risks, like harmful subliminal influences, are banned. High-risk systems must comply with strict standards, while low-risk systems face fewer regulations. The Act will gradually implement over time, with measures including prohibitions on risky systems, establishment of national AI regulatory sandboxes, and guidance on high-risk categories. Organizations must assess and document their AI systems regarding these classifications.

https://kpmg.com/dk/en/ai/the-eu-ai-act-what-you-need-to-know.html

The General-Purpose AI Code of Practice

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EU's General-Purpose AI Code of Practice, published July 10, 2025, aids industry compliance with AI Act on safety, transparency, and copyright. It's voluntary for AI model providers, offering legal certainty and reduced administrative burdens. The code includes chapters on Transparency, Copyright, and Safety, applicable to advanced models with systemic risks. Providers can sign the code to demonstrate compliance.

https://digital-strategy.ec.europa.eu/en/policies/contents-code-gpai

Europe’s AI Code Urges Companies to Disclose Training Data and Avoid Copyright Violations

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EU's AI code mandates companies disclose training data and respect copyright, facing fines up to 7% of revenue for noncompliance. Guidelines aim to help tech giants like OpenAI and Google follow the AI Act, which includes transparency about model development and safety measures.

https://www.techspot.com/news/108644-europe-ai-code-urges-companies-disclose-training-data.html

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