The European Union AI Act, set to take effect between 2025 and 2026, has stirred debate within the tech ecosystem, with major tech companies leading the charge against some of its provisions. While the Act is intended to foster innovation and establish a framework for safe AI use, tech giants view it as a hindrance to growth, urging for a less stringent approach.
You may be wondering how this affects the tech landscape in Africa. Here’s what you need to know:
- While US technology companies are the key developers and investors in AI systems, African tech firms collaborating with or receiving investment from these companies may feel the impact of the AI Act indirectly.
- The European AI Act will apply to organisations deploying and utilising AI systems, not just developers. This could increase the compliance burden for African companies looking to expand into European markets or partner with EU-based firms.
- For African companies operating or planning to operate across multiple regions, including the EU, navigating these new requirements could complicate their global compliance strategies.
While the European Union AI Act is not expected to take full effect until next year, numerous businesses may face increased scrutiny. Many corporations rely on AI to fuel innovation, improve user experiences, and boost profitability. However, complying with the requirements of the AI Act could potentially slow down development processes and increase operational costs for African tech companies aiming for international markets.
Businesses with multi-regional operations should gear up as this AI Act could signal the start of a new era of global regulation. Companies must anticipate that strict AI regulations could set a precedent, influencing policies in emerging markets.
As global regulations evolve, maintaining a robust, adaptable compliance strategy is more crucial than ever. You can begin by discovering your top three obligations with the Compliance Compass.
Trust us, compliance doesn’t have to be complicated!
