That could be an obstacle for products conceived under a different set of laws, said Enza Iannopollo, vice president principal analyst at Forrester, said, “These requirements cannot always be added as an afterthought. Many AI systems need safety, integrity, and ethical safeguards built in by design.”
And, said Gogia, “The EU AI Act is not just a legal framework, it is a procurement filter.” Enterprise procurement teams, internal audit functions, and insurers impose requirements similar to EU standards regardless of local regulation, he said. Multinationals standardize internal AI governance to avoid building separate compliance systems for different markets.
Enterprises face increased liability exposure
The order’s approach of pushing to remove state laws it considers pre-empted by an existing federal law on “unfair and deceptive acts,” and drafting legislation that would, if passed, pre-empt other state AI laws, leaves enterprises navigating increased legal uncertainty, according to analysts.
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