The European Commission has launched the EU AI Act, the first comprehensive regulation governing artificial intelligence (AI) in the world. As of 02 February 2025, businesses are facing a crucial deadline to begin aligning with this Act. Parts of the legislation are already in effect, presenting both challenges and opportunities. To help businesses prepare for the AI Act, the European Commission created the AI Pact, a voluntary initiative designed to support AI implementation and compliance while ensuring that AI is used responsibly across various sectors.
AI Act & AI Pact
The AI Act is designed to promote safe, ethical, and reliable AI systems across Europe. The Act sets clear rules based on the risk level associated with different AI applications, ranging from low risk uses (such as video games) to high-risk applications (such as healthcare or human resources). For small and medium-sized businesses (SMEs), it can be overwhelming to determine which AI systems they use fall under which risk category. However, most of the AI Act’s provisions will not be mandatory until August 2026, providing about 17 months for businesses to transition. Some key rules—particularly those regarding prohibited AI practices—are already in effect as of February 2025, urging businesses to ensure compliance promptly. This is where the AI Pact comes in. With over 130 companies already participating, the Pact aims to simplify the AI Act’s complexities by providing shared guidelines, best practices, and educational resources. For SMEs, the Pact offers help in breaking down the regulation, offering resources, and creating a platform for knowledge exchange. Through this voluntary initiative, the AI Office (a European Commission body dedicated to AI expertise) promotes joint efforts among businesses, NGOs, universities, and public bodies. It encourages companies to share their internal policies and compliance efforts, fostering a community of mutual learning.
Key Pillars of the AI Pact
The AI Pact is structured around two main pillars:
- Information Exchange: The AI Pact community facilitates businesses sharing advice, insights, and challenges. Members can participate in webinars hosted by the AI Office, receive updates and clarifications, and access expert advice on compliance matters. This is an excellent opportunity for SMEs to find solutions and stay informed about the latest developments in AI regulation.
- Commitments to AI Act Compliance: Companies are encouraged to make public pledges outlining how they plan to meet the AI Act’s requirements ahead of the deadlines. These commitments address areas like AI governance, risk assessment, and transparency. Pact members can share their AI practices—such as how they are managing high-risk AI systems—to promote knowledge transfer. Transparency is crucial in building trust in AI, such as labelling AI-generated content and managing risks.
For SMEs, participating in the AI Pact makes compliance with the AI Act more achievable. The Pact provides practical support and guidance, helping businesses implement compliance measures gradually.
The AI Pact’s Benefits for Businesses Across Europe
For businesses across Europe, the AI Pact provides an opportunity to get ahead of AI compliance. As more companies join the Pact, the hope is that clearer guidelines and simpler implementation processes will emerge. The ultimate goal is to create an AI ecosystem that is safe, secure, human-centric, and innovative—a win for both companies and society.
Although the journey to AI compliance may seem daunting, especially with deadlines approaching, the AI Act cannot be ignored. Resources like the AI Pact are invaluable, helping businesses ensure their AI systems meet EU compliance standards. By working together, sharing insights, and collaborating, businesses can navigate the regulatory landscape and move towards a compliant and innovative future.
References:
Regulatory Framework AI
