Working GDPR-compliant with local EU AI: Leverage digitalization, minimize risks.

Why European AI solutions are the better choice

As of February 2025, AI systems that pose an unacceptable risk under European law will be banned in the European Union – this is regulated by the so-called EU AI Act . 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.

Reading tip

• EU AI Act as protection against high-risk AI

In contrast, the US and China primarily rely on cloud AI solutions controlled by large corporations. This poses two major risks for medium-sized companies in Germany, Austria, and across the EU:

1. Data protection and surveillance
   Cloud providers from the USA are subject to the US CLOUD Act. This means that authorities can demand access to your data – even if it is stored on European servers. This jeopardizes the confidentiality of sensitive customer and business data and significantly weakens data protection-compliant work .

2. Dependence and loss of control
   In China, data processing and data analysis are under strict state control. As a European company, it's not only there that you risk losing control over your own data, and it's no longer possible to trace how it's being used.

Let’s look at the two risks in detail and what the lack of international legal regulations regarding artificial intelligence causes.

What the lack of guidelines on AI use risks

Without clear guidelines for the use of AI systems, there is a risk that sensitive company data will be passed on unprotected to cloud AI providers or similar services.

This can not only lead to data breaches: If sensitive business information is processed without control or stored in unsafe environments, companies risk serious financial and legal consequences . Our interviewees are often unaware, or at least not aware, of the liability of management under the GDPR.

Many companies lack guidelines and specifications for the use of artificial intelligence . For example, an employee can simply have current business results prepared online as a graphic or applicant data, without regard for confidentiality or data protection. The use of secure AI offers undeniable advantages , especially when the solution can be operated locally or on-premises.

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 a secure EU AI solution mean for your company?

The AI ​​Act aims to make the use of artificial intelligence safer and more transparent. Individual, European local AI solutions offer the opportunity to use artificial intelligence in a trustworthy and secure manner .

At CXO Partners, we go one step further with our products: we consistently focus on secure local AI deployment . Our AI solutions can be operated on-premises and are optimized for sustainable use of system resources. This creates a solid foundation for the digitalization of companies in the EU .

With our local AI solutions, we avoid the risks of data protection and dependency outlined above . With our solutions, data sovereignty always remains within the company, preventing any loss of control over your data . For companies that handle sensitive data, our solutions offer a truly secure way to implement artificial intelligence in their own business processes to work more efficiently.

CXO Partners make secure AI usable in a wide variety of areas : in municipal services, healthcare, legal services or consulting.

How can your company use local AI?

It's the ideal time to review existing digital processes and ensure that they utilize artificial intelligence properly and in compliance with data protection regulations. This can ensure compliance in the processing, storage, and use of sensitive corporate data.

The introduction of secure, local AI solutions can help to harness the benefits of digitalization with full transparency in processing and secure data sovereignty .

Our conclusion on European AI solutions

The new regulations of the AI ​​Act and the risks of AI cloud solutions demonstrate how problematic the solutions of large corporate companies from the US and China are. With the secure, data protection-compliant use of artificial intelligence from and in the EU, clean solutions can be implemented – without loss of transparency and with full control over one's own data.

With our AI solutions, which are geared towards local or on-premise operation, we have been committed to secure implementation from the outset. With our in-depth expertise in building local artificial intelligence, we can optimize companies' business processes sustainably and cleanly.

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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