The AI ​​Act comes into force: seize opportunities, minimize risks.

Our summary of the AI ​​Act

The AI ​​Act was first introduced by the European Commission in 2023 to create a legal framework for the use of artificial intelligence in Europe . The goal was to promote innovation while protecting citizens' security and fundamental rights. After intensive negotiations in the European Parliament and the Council of the European Union, the AI ​​Act was adopted in 2024. The gradual introduction 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 will be banned in the European Union . Comprehensive bans and regulations now apply to particularly high-risk applications. Such applications must be shut down immediately and may not be continued to operate.

Prohibited systems include, for example, those designed to subconsciously influence or manipulate people . This also includes so-called social scoring , i.e., the AI-supported evaluation of user behavior by companies or public bodies. This use of artificial intelligence, as used in China, for example, contradicts fundamental European values ​​and is therefore classified as highly dangerous and inadmissible.

Why is the AI ​​Act important?

As of 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 people's safety or fundamental rights. It is crucial for medium-sized companies that rely on digital processes to understand the implications of this regulation .

This approach shows how important it is to find a balance between technological advances and social responsibility .

What does “highly dangerous AI application” mean?

According to the AI ​​Act, highly dangerous AI applications are those systems that pose significant risks to people's safety, health, or fundamental rights . Examples include AI systems for biometric surveillance, automatic credit 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 review their compliance with the new requirements.

These dangers exist when there are no guidelines for the use of AI

Without clear guidelines for the use of AI systems, there is a risk that sensitive corporate 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 unchecked or stored in unsafe 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 to minimize such risks. With our focus on secure, local artificial intelligence, we see our path confirmed and, with CLUE as an on-premise AI platform , we offer a clean, data protection-compliant solution for medium-sized companies .

Reading tip

• Offline AI: Use 100% clean AI processing locally on-premise
• Secure digital processes with AI: data protection compliant & local

What does the AI ​​Act mean for companies?

The AI ​​Act aims to make the use of artificial intelligence safer and more transparent. For medium-sized companies, it means that AI applications considered high-risk are no longer permitted . At the same time, the regulation opens up the possibility of implementing trustworthy AI solutions that comply with the new standards. CXO Partners is also happy to assist with the transition to secure AI systems.

How can companies respond to this?

It's the ideal time to review your existing digital processes and ensure they comply with the new regulations. By optimizing and digitizing your processes, you can not only ensure compliance but also achieve efficiency gains.

Implementing secure, local AI solutions can help improve your processes while meeting regulatory requirements.

Let's look at an example

A medium-sized company uses ChatGPT to analyze sensitive customer data to create personalized marketing campaigns. This solution lacks transparency and security in terms of data storage and processing . With the entry into force of the AI ​​Act, this application is classified as high-risk and is therefore no longer permitted.

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 enabling intelligent marketing.

By working with a specialized partner like CXO, the company can secure its processes and deploy a privacy-compliant local AI solution that complies with the new EU regulations. By implementing these solutions, the company can continue to run personalized marketing campaigns without violating the AI ​​Act.

Our conclusion on the EU 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, you can not only meet legal requirements but also increase your efficiency and secure a competitive advantage.

We're happy to provide personalized support and secure AI solutions . Let's get started - when's a good time for you?

Reading tip

• EU AI Act Workshop for SMEs (remote)

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