AI act: what is it and what does it mean for your organization?
The AI Act sets new rules for the use of AI within organizations. Which AI systems are covered by law? What obligations apply? And how do you ensure that your AI strategy is compliant and future-proof? In this blog, you can read everything you need to know about the AI Act and how to take the right steps.
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AI act: what is it and what does it mean for your organization?
The AI Act is a milestone in the regulation of AI in Europe. The first obligations have been in place since February 2, 2025. Companies that fail to comply risk substantial fines. Is your organization ready?
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The AI Act changes the playing field
Many companies are using AI. Customer queries are automated by smart chatbots, AI is used for data analysis and there is plenty of experimentation with AI agents.
The development of AI went very fast. And the regulations? It's only now following. The first obligations have been in place since February 2. Companies that fail to comply risk fines of up to 35 million euros or 7% of their annual turnover.
What does this mean for your company? Do you need to adapt AI systems? Are there legal risks? And above all: how do you ensure that your AI strategy doesn't end in a compliance nightmare?
In this blog, you can read exactly what the AI Act means, how it affects your organization and what steps you need to take to stay compliant. Because one thing is certain: AI will stay, but the rules will change.
What is the AI Act?
The Artificial Intelligence Act (AI Act) is the European Union's first comprehensive AI legislation. The purpose of this law is to regulate AI systems based on their risks, so that AI is used safely, transparently and responsibly.
With the rapid rise of AI applications in service companies, for example wellbeing, production and recruitment, the need for clear rules is also growing. The AI Act sets requirements for how AI should be developed, used, and controlled to prevent risks of privacy, discrimination, and abuse.
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Why is the AI Act in place?
The AI Act was introduced to:
- Protecting consumers and businesses against the misuse of AI.
- Ensuring transparency, so users know when they're dealing with AI.
- Promoting ethical use of AI, with clear rules about privacy, safety and responsible use.
What does the AI Act regulate?
The AI Act assesses AI systems based on their level of risk. Stricter rules are applied for higher risk applications. The following AI applications, among others, are covered by the legislation:
- Surveillance & biometric identification — Like facial recognition in public spaces.
- Workplace monitoring — AI systems that track and assess employees.
- Decision-making about people — For example, AI in recruitment, lending or justice.
- Critical infrastructure & healthcare — AI that poses risks to safety and lives.
Do you want to know how this law affects your organization? In the next section, we explain what impact the AI Act has on companies and what you need to arrange now to stay compliant.
The impact of the AI Act on your organization
The AI Act affects companies that develop, use, or integrate AI into their processes. So if you do anything with AI systems, you must also comply with the new regulations.
To make the concept of AI a little clearer, the EU has classified AI systems into four levels of risk. In other words, not all AI solutions fall under the same legislation. But how do you know which category your AI usage falls into?
The four AI risk levels under the AI Act
The AI Act divides AI systems into four categories, depending on the risk they pose. Based on the risk they pose, rules are used. Here are the four levels of risk:
1. Prohibited AI systems (unacceptable risk)
Some AI applications are completely prohibited because they violate fundamental rights or pose a major risk to society. Examples:
- AI systems that cause manipulative or misleading behavior
- Social scoring systems as in China, where citizens receive a risk score
- Real-time facial recognition in public spaces (with some law enforcement exceptions)
2. High-risk AI systems (strict regulation)
AI systems that have a major impact on people's lives or rights, must meet strict requirements in terms of transparency, risk management and audits. Examples:
- AI usage in recruitment, where algorithms screen applicants
- AI in healthcare, such as systems that make diagnoses
- AI for credit assessment, for example when issuing loans
3. Limited-risk AI systems (transparency requirements)
Some AI applications have less strict rules, but there must be clear reports that AI is being used. Examples:
- Chatbots and Virtual Assistants who communicate with customers
- Deepfake technology, where AI-generated content must be labeled as synthetic
- Generative AI tools such as Midjourney, who are required to be transparent about how they generate content
- AI-driven systems such as conversational AI that make complex datasets accessible
- AI-assisted decision making, such as AI systems that generate reports
- Machine Learning systems that make product recommendations and analyze customer behavior
4. Minimal risk AI systems (no specific regulation)
Most everyday AI applications fall into this category and do not require any additional regulations. Examples:
- Spam filters in email programs
- AI-driven video game characters
- Content recommendation systems (e.g. on streaming services)
The AI Act is here. Time for action!
Make sure your AI solutions are compliant and future-proof.
What does your organization need to do?
After reading these four risks, you may have found out that you are using AI. Have you also found out that you don't know if they comply with the new rules? Then ask yourself the following questions:
What AI tools do you use?
Identify which systems are running within your organization and what they are being used for.
What risk level does your AI have?
Are your applications high-risk and do they have to meet strict compliance requirements?
Is there sufficient transparency?
Can employees, customers and stakeholders see and understand how AI is being used within your company.
Do you have AI governance in order?
Are the AI processes, risks and audits well documented?
At this point, you may find out that you are using AI, but that there is none AI strategy or is a policy. The AI Act makes it clear that this is no longer an option. The first commitments have already taken effect. When you use AI, it must be used safely, transparently and compliantly.
AI Compliance is coming — is your organization ready?
The AI Act forces companies to be more aware of AI. It has an impact on how companies develop, use and implement AI. But how do you approach this without it becoming an enormous burden for your organization?
To comply with the AI Act, you need a plan. Bee Flawless Workflow we help organizations integrate AI into their business processes, stay compliant and use AI as a competitive advantage.
Flawless Workflow: From Compliance to AI Strategy and AI Solutions
We ensure that AI within your organization not only complies with the rules, but also becomes a strategic advantage. Our services include:
- AI strategy & development
- Process mapping & advice
- AI training & awareness
- AI policy and governance
AI strategy & development
We design and implement AI solutions that not only comply with the AI Act, but also align with your business goals. We understand the technology behind AI and can explain how tools work and how they are developed. For more information, check out our data & AI page
Process mapping & advice
Where does AI fit into your organization? What risks are there? We map your current processes and identify where AI can offer added value. Based on that, we help you develop an AI roadmap that is both impactful and compliant.
AI training & awareness
A successful AI implementation starts with AI understanding within your organization. We offer specific AI training courses, explaining not only the possibilities of AI, but also how to balance investments against the impact on your business. No general AI training courses, but specific advice for your company and sector.
AI Policy & Governance
AI requires clear guidelines. We help organizations draw up a clear AI policy that specifies how AI is used responsibly, what compliance requirements apply and how AI governance is organized.
Build AI solutions that comply with the AI Act
We ensure that AI within your organization not only complies with the AI Act, but also becomes a strategic advantage. We go beyond advice: we build and implement AI solutions that make a real impact.
At Flawless Workflow, we develop AI solutions that are not only compliant with the AI Act, but also make your organization smarter and more efficient. This starts with a strong data strategy: we centralize data, identify AI use cases and create an architecture that optimally supports processes.
We then develop and integrate AI solutions that help organizations work smarter and more efficiently. Our approach is pragmatic and focused on results: we help you use AI strategically to accelerate innovation, optimize processes and strengthen your competitive position:
- Agentic AI systems — Machine learning AI agents that can operate autonomously within your organization.
- Forecasting & looking ahead — AI models that predict trends and developments based on data.
- Integrations with ChatGPT and other AI models — AI solutions linked to existing systems
- Tailored AI solutions — From smart automations to advanced data analysis.
- Machine learning — AI models that continuously learn and improve to optimize your business.
- Web apps & software with integrated AI automation — Directly applicable AI in your business processes.
Make sure you move with us
AI is constantly evolving. We ensure that your organization moves with you. Our solutions are further developed and optimized as new opportunities arise. Make sure you're AI-ready not only today, but also in the future.
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Do you want to know where your organization stands under the AI Act?
Request an informal conversation. In a short session, we can explain to you what steps you need to take.
Frequently asked questions about the AI Act
What does the AI Act do?
The AI Act is the European Union's first comprehensive AI legislation. The law regulates the use of AI on the basis of risks and sets strict requirements for transparency, safety and ethical use. The goal is to promote innovation while protecting consumers and businesses from the risks of AI.
Has the AI Act been approved yet?
Yes, the AI Act was officially adopted by the European Union and the first obligations took effect on February 2, 2025. Companies that develop, use or integrate AI into their processes must comply with the rules of the law to avoid fines or penalties.
What is the EU AI Act?
The EU AI Act is legislation that regulates AI systems in the EU. The law assesses AI applications based on four levels of risk: unacceptable, high, limited and minimal risk. High-risk AI applications, such as AI use in recruitment, credit assessment, or healthcare, must meet stringent transparency and risk management requirements.
What is the difference between the GDPR and the AI Act?
The GDPR (General Data Protection Regulation) focuses on protecting personal data, while the AI Act focuses on regulating AI systems.
GDPR protects individuals' privacy and data, including how AI processes personal data.
AI Act focuses on transparency and risk management of AI systems, regardless of whether they process personal data or not.
In many cases, both laws overlap. AI systems that process personal data must comply with both the GDPR and the AI Act.
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