EU AI Act as protection against high-risk AI
CXO GeschäftsprozesseOur summary of the AI Act
The EU AI Act was first presented by the European Commission in 2023 to create a legal framework for the use of artificial intelligence in Europe . The aim was to promote innovation while protecting the safety and fundamental rights of citizens. Following intensive negotiations in the European Parliament and the Council of the European Union, the AI Act was adopted in 2024. The phased implementation of the regulations allows companies to prepare for the new requirements.
As of February 2, 2025, AI systems that pose an unacceptable risk under European law are prohibited in the European Union . Comprehensive bans and regulations now apply, particularly affecting high-risk applications. Such applications must be shut down immediately and may not continue to operate.
Prohibited systems include those designed to subconsciously influence or manipulate people . This includes so-called social scoring , the AI-supported evaluation of user behavior by companies or public authorities. This use of artificial intelligence, as practiced in China, for example, contradicts fundamental European values and is therefore considered highly dangerous and impermissible.
Why is the EU AI Act important?
From February 2025, the use of AI applications classified as highly dangerous will be prohibited in the European Union. This regulation particularly affects applications that pose a high risk to human safety or fundamental rights. For small and medium-sized enterprises (SMEs) that rely on digital processes, it is crucial to understand the implications of this regulation .
This approach demonstrates the importance of finding a balance between technological progress and social responsibility .
What does "highly dangerous AI application" mean?
Highly dangerous AI applications, according to the AI Act, are systems that pose significant risks to human safety, health, or fundamental rights . Examples include AI systems for biometric surveillance, automated creditworthiness assessment, or applications used in critical infrastructure.
The definition also includes systems whose potential malfunctions could lead to serious consequences , such as discrimination or the loss of sensitive data. Companies using such applications must carefully examine whether they comply with the new requirements.
These dangers arise when there are no regulations governing the use of AI.
Without clear guidelines for the use of AI systems, there is a risk that sensitive company data will be exposed unprotected to external platforms such as ChatGPT or similar services. This can lead not only to data breaches but also to a loss of competitive advantage. If sensitive information is processed without oversight or stored in insecure environments, companies risk serious financial and legal consequences .
We therefore see compliance with the AI Act and the use of secure, local AI solutions as crucial steps in minimizing such risks. Our focus on secure, local artificial intelligence confirms our approach, and with CLUE, our on-premise AI platform , we offer a clean, data protection-compliant solution for medium-sized businesses .
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What does the AI Act mean for businesses?
The AI Act aims to make the use of artificial intelligence safer and more transparent. For medium-sized businesses, this means that AI applications deemed high-risk may no longer be used . At the same time, the regulation opens the door to implementing trustworthy AI solutions that comply with the new standards. CXO Partners is happy to assist with the transition to secure AI systems.
How can companies respond to this?
Now is the ideal time to review existing digital processes and ensure they comply with the new regulations. By optimizing and digitizing your workflows, you can not only ensure compliance but also achieve efficiency gains.
The introduction of secure, local AI solutions can help improve your processes while also meeting legal requirements.
Let's look at an example.
A medium-sized company uses ChatGPT to analyze sensitive customer data in order to create personalized marketing campaigns. With this solution , neither the storage nor the processing of the data is transparent or secure . With the implementation of the AI Act, this application is classified as high-risk and is therefore no longer permissible.
The company wants to continue pursuing efficient marketing strategies, but in compliance with the new regulations. The goal is to find a legally compliant solution that protects data privacy while simultaneously enabling intelligent marketing.
By collaborating with a specialized partner like CXO, the company can make its processes more secure and implement a data protection-compliant, locally sourced AI solution that meets the new EU regulations. Implementing these solutions allows the company to continue running personalized marketing campaigns without violating the AI Act.
Our conclusion on the EU's AI Act
The new regulations of the AI Act offer the opportunity to rethink existing processes and replace them with secure, compliant AI solutions . As a medium-sized company, this allows you not only to meet legal requirements but also to increase your efficiency and secure a competitive edge.
We're happy to provide individual support and secure AI solutions . Let's get started – when would be a good time for you?
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Your company needs a secure local AI solution.
CXO Partners specializes in data protection-compliant artificial intelligence for everyday office use: We process all data entirely on a local machine using open-source models, ensuring true data sovereignty. We would be happy to discuss this further and how we can support your company in a personal consultation.
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Together we will find the solution that has the greatest impact on your digital process.
