The EU AI Act is now in force and enforcement is ramping up. For SMEs, the good news is that most general-purpose AI use cases fall under light transparency obligations rather than the stricter rules for high-risk systems.
Step 1: Map your AI use cases
Classify each use case as prohibited, high-risk, limited risk, or minimal risk. Most internal productivity and customer support tools are limited risk.
Step 2: Choose infrastructure with data residency
Under the Act and GDPR, you must know where prompts and model outputs are processed. Hosting in the EU is the simplest way to demonstrate accountability.
Step 3: Document and disclose
Keep records of model versions, data flows, and human oversight. For customer-facing chatbots, add a clear disclosure that the user is interacting with AI.
CIPHER TECH customers receive a compliance pack with data processing agreements, audit logs, and model cards to make these steps easier.