Indian AI firms may face extra costs as EU’s AI Act kicks in
compliance burdens and costs for Indian startups and businesses providing AI systems in that region and impact their competitiveness, experts said.
The Act is expected to come into force by the end of June.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteMIT xPROMIT Technology Leadership and InnovationVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitIIT DelhiCertificate Programme in Data Science & Machine LearningVisit“Indian startups that make available AI systems in the EU will have to comply with the law, because the Act applies to organisations that place AI systems in the EU market, irrespective of where they are located. This will increase compliance burden and costs for these Indian startups and companies, potentially impacting their operations and growth plans in the European market,” said Anirudh Rastogi, managing partner at Ikigai Law, a legal and policy firm that focuses on technology and innovation.
Last week, the Council of the European Union gave its final approval for the Act, making it the first legislation globally to govern the disruptive technology. Its risk-based approach means different categories of AI systems have different rules and timelines for compliance. While general purpose AI systems have a year to comply and high-risk systems will have up to three years, the ban of AI systems that pose unacceptable risks will apply within six months of the Act coming into force.
Companies could have to complete risk assessments
