How does law relate to AI?

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AI is linked to a wide range of regulatory and liability issues. It can offer significant business advantages – provided that it is used responsibly and through a well-thought strategy. The EU Artificial Intelligence Act (AI Act) forms the main regulatory framework, complemented by other obligations, contract law, and ethical principles.

 

What impact does the AI Act have?

 

The AI Act imposes obligations on both AI providers and deployers based on risk categories (prohibited, high-risk, and limited-risk use cases). Developers and providers carry the broadest responsibilities, while the obligations of deployers are narrower and mainly limited to high-risk use cases. In any event, every organisation that offers or uses AI must at least ensure that its staff possess sufficient AI literacy to identify risks, opportunities, and potential harms.

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An internal AI policy is an effective tool for promoting the AI literacy required by the AI Act. It can also include role-specific obligations based on AI risk categories, bridging the gap between regulation and day-to-day operations.

 

What other perspectives are relevant?

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In addition to the AI Act, organisations must consider other regulatory obligations such as those related to data protection, employment law, and consumer protection. While many companies are familiar with these frameworks, AI challenges conventional thinking and requires new, innovative ways to apply legal principles in novel contexts.

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AI also impacts contractual practices. For example, liability for system performance or outputs often needs redefining in AI-based solutions. Similarly, new challenges emerge concerning intellectual property and copyright infringement, which should be addressed in contracts.

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How can AI become a business enabler?

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Leveraging AI successfully requires balancing technological potential with regulatory limits. The role of law is not merely to manage risks but to enable responsible, business-aligned use of AI. When an organisation understands its role and obligations, and establishes clear governance principles, AI becomes a source of sustainable competitive advantage – not a risk, but an asset.