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Glossary

EU AI Act

The EU AI Act (Regulation (EU) 2024/1689) is the European Union's comprehensive, risk-tiered law for AI. It classifies systems by risk and imposes obligations — heaviest on 'high-risk' uses such as credit scoring and life/health insurance pricing.


For financial services, the high-risk tier triggers transparency, documentation, and human-oversight duties. Some high-risk compliance deadlines are subject to a proposed deferral (the Digital Omnibus) that is not yet final law — confirm the current position with counsel.

It contrasts with the US approach, which relies on existing law plus principles-based regulator guidance rather than one statute.

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Sources

  1. EU AI Act — Regulation (EU) 2024/1689 (European Commission)