EU AI Act compliance

The EU AI Act introduces the world's most comprehensive AI regulation. Enterprise organizations must understand their obligations and implement appropriate controls — or face fines up to €35 million or 7% of worldwide turnover.

Understanding the risk-based framework

The EU AI Act classifies AI systems into four risk categories, each with progressively stricter requirements:

• Unacceptable risk — Banned AI practices: social scoring, manipulative subliminal techniques, and real-time biometric surveillance.
• High risk — AI in employment, credit scoring, education, law enforcement, and critical infrastructure. Requires conformity assessments, audit trails, and human oversight.
• Limited risk — AI chatbots, deepfakes, and emotion recognition. Requires transparency labeling.
• Minimal risk — Most general-purpose AI usage. Subject to voluntary codes of practice.

Key requirements for enterprises

Regardless of risk classification, enterprises using AI should implement:

1. Record-keeping and audit trails (Article 12)

AI systems must maintain logs sufficient to determine compliance. PromptWall's audit trail records every AI interaction with full inspection detail — who sent what, what was detected, and what action was taken.

2. Risk management system (Article 9)

A continuous risk management process must identify, analyze, and mitigate AI risks. PromptWall's risk management capabilities quantify AI risks through detection metrics and compliance dashboards.

3. Data governance (Article 10)

Training data and operational data must be governed with appropriate controls. For enterprise AI usage, AI DLP ensures that personal data is detected, classified, and protected before reaching AI providers.

4. Transparency and human oversight

Users must be informed when they interact with AI systems. Organizations must ensure human oversight for high-risk decisions. Policy enforcement automates compliance with transparency requirements.

Compliance automation with PromptWall

Manual compliance is expensive and error-prone. PromptWall automates key compliance activities: audit trail generation, policy enforcement, data classification, PII detection, and compliance reporting — reducing the burden on GRC teams while improving compliance posture.

See also our broader AI governance framework for a comprehensive approach to compliance and our compliance checklist for a practical implementation guide.