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The European AI Act Explained: What Enterprises Need to Know (and Do) to Stay Compliant

Europe’s landmark AI Act is here – and it’s reshaping how companies worldwide build and deploy AI systems. Much like GDPR shook up data privacy globally, the EU AI Act introduces sweeping rules for AI with extraterritorial reach. In other words, even if your enterprise is based outside Europe, the Act likely applies if you offer AI-driven products or services in the EU market or affect EU individuals. With provisions rolling out from August 2025 onward, tech leaders and CxOs must understand the Act’s requirements now to avoid hefty penalties and business disruptions.

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