Glossary
EU AI Act
The EU AI Act is the European Union regulation that classifies AI systems by risk level and sets obligations for each level, from transparency and documentation to human oversight and evidence.
Also known as: AI Act, Artificial Intelligence Act
How the Act works
The Act is risk-based. Some practices are prohibited, high-risk systems carry the heaviest obligations, and lower-risk systems mostly carry transparency duties. It applies to organizations that provide or deploy AI in the EU, wherever the AI vendor is based, and its obligations apply in stages from 2025.
What it means for governance
Obligations attach to how a system is used, whichever vendor supplied it. So compliance cannot stop at Microsoft 365 Copilot: every AI system in use, including assistants from other vendors and in-house agents, has to be inventoried, classified by risk and documented.
Under the Act, knowing which AI you run is a compliance duty. An inventory with owners, purposes and usage records is the starting point for every later obligation.