Risks worth knowing

AI systems often operate on massive datasets, including personal data. Processing this data – if not properly secured – can lead to violations of the General Data Protection Regulation (GDPR). Furthermore, the AI Act, an EU regulation governing the use of artificial intelligence in the EU, has been in force since 2025.

Million-dollar fines and reputational damage – the price of non-compliance with the AI Act and GDPR

Failure to comply with these regulations can result in severe financial penalties, and these are not abstract sanctions but real threats to a company’s stability. In the case of the GDPR, violations result in penalties of up to 4% of the company’s annual turnover from the previous financial year. These penalties can reach up to €20 million. Violations of the AI Act can result in penalties of up to 7% of the company’s annual global turnover, while violations involving high-risk systems or failure to comply with disclosure obligations can result in penalties of up to €15 million or 3% of turnover, respectively.

But that’s not all. Incidents involving improper data processing also mean significant non-financial and operational losses. They can seriously damage a company’s reputation, leading to a loss of trust from key clients and business partners. Post-incident costs must also be considered, such as external audits, costly litigation, compensation for injured parties, and the need to immediately suspend and rebuild non-compliant AI systems. All of this generates additional, unplanned operational expenses. In a world where transparency is valued, a single incident can undermine years of building a leadership image.

Common challenges of GDPR and AI Act, or AI Governance as your key to control and development

Although the GDPR and the AI Act are separate pieces of legislation, they often apply concurrently. The GDPR focuses on protecting the privacy and rights of individuals, while the AI Act classifies AI systems according to risk level and imposes obligations regarding transparency, security, and accountability.

In practice, this means that any company implementing AI tools must:

• assess whether the artificial intelligence (AI) system processes personal data, i.e. information that allows the identification of a specific person (e.g. name, e-mail address, telephone number, location data);
• conduct a risk analysis, i.e. the so-called DPIA (Data Protection Impact Assessment) – an assessment of the impact on data protection, which allows for the identification of potential threats and the implementation of risk mitigation measures;
• ensure compliance with the principles of the GDPR – in particular, the principles of data minimization, transparency of processing, and legality of activities. This means that data must be processed only to the extent strictly necessary to achieve a business purpose, and users should be aware of how it is being used;
• ensure appropriate consent and legal basis for processing, e.g. the consent of the individual, the performance of a contract or the legitimate interest of the company, if consistent with the regulations.

Preparation is key – comprehensive AI Governance implementation

Before a company decides to implement AI tools, it should thoroughly prepare for legal compliance. It is worth conducting a compliance audit, consulting with a Data Protection Officer, and considering the guidelines arising from the AI Act. However, in the era of the AI Act, this preparation must go beyond a traditional GDPR audit and lead to the implementation of a comprehensive AI Governance system.

The decision to implement professional AI Governance translates directly into measurable results and real security for the future of your company:

• Compliance with key regulations. Full compliance with the AI Act, GDPR, and ESG (Environmental, Social, and Governance) regulatory requirements.
• Audit readiness. Ensuring full documentation and procedures, which guarantees readiness for regulatory and investor audits.
• Avoiding high fines. Effective protection against severe financial sanctions (up to €35 million or 7% of global turnover for non-compliance with the EU AI Act).
• Increased control. Maximum transparency and control over decision-making processes and AI projects in your organization.
• Strengthening human resources. Increasing employee competencies and awareness of the risks associated with implementing artificial intelligence.
• Risk minimization. Systematic minimization of legal, operational, and reputational risks, protecting the company’s image.

A well-planned AI Governance implementation not only minimizes legal and financial risk but also builds trust and a competitive advantage. Because in a world where data is currency, responsibility for its protection is not just an obligation – it is also an opportunity for growth.

Turn obligation into competitive advantage!

Prepare your company for the AI Act and GDPR by building trust and accountability in the era of artificial intelligence.

See how we can guide your organization through a compliance audit and risk analysis (DPIA), check out our comprehensive service: AI Governance.

Ask for an offer