EU AI Act Compliance is a critically important service for Georgian tech companies operating in or planning to enter the EU market. The European Union's "Artificial Intelligence Act" (EU AI Act) is the world's first comprehensive law regulating AI systems. Although Georgia is not an EU member, this law has extraterritorial reach: it applies to any company providing AI products or services to EU citizens, or whose system outputs are used within the EU. Furthermore, under the Association Agreement, Georgia is gradually harmonizing its legislation with European standards. Therefore, compliance with the EU AI Act is not only a prerequisite for export but also a guarantee against future legislative risks.
Our service includes full legal and technical support to meet the requirements of the EU AI Act. The service covers the following key components:
- Risk Classification: Assessing your AI system into one of four levels: Prohibited, High-risk, Limited risk, or Minimal risk.
- Prohibited Practices Audit: Verifying that your system does not use subliminal manipulation, social scoring, or real-time remote biometric identification in public spaces.
- Conformity Assessment: Guiding high-risk systems through mandatory procedures, preparing technical documentation, and obtaining CE marking.
- Data Governance: Checking the quality of training, validation, and testing datasets to eliminate bias and discrimination.
- Transparency and Human Oversight: Designing the system so that users know they are interacting with AI, and operators can intervene or stop the process.
In real life, ignoring the EU AI Act can lead to catastrophic financial consequences (fines up to 7% of global turnover). For example, a Georgian startup creates a medical diagnostic AI program and sells it to German clinics. This system automatically falls into the "High-risk" category. If the company has not undergone a conformity assessment and does not have a quality management system in place, it will be banned from selling the product and fined. Second scenario: A company uses a chatbot for European customers. The law requires the user to be informed that they are talking to a machine. Even violating this simple rule leads to substantial sanctions. Third case: An HR company uses an algorithm to screen resumes. This is also a high-risk system requiring strict documentation and bias testing.
The legal framework is based on the EU Regulation on Artificial Intelligence (EU AI Act), as well as GDPR (General Data Protection Regulation). In Georgia, this resonates with the Law on Personal Data Protection and the Association Agreement between Georgia and the EU. However, the primary regulatory document for exporting companies remains the European regulation. It is important to note that the EU AI Act establishes "product safety" standards, meaning AI is treated as a product that must be safe and respect fundamental rights.
The process begins with a "Gap Analysis"—comparing the current state with legal requirements. Specialists draw up a "Roadmap" to achieve compliance. For high-risk systems, extensive technical documentation is prepared, describing the system architecture, logic, data sources, and cybersecurity measures. The final stage involves appointing an EU representative (if the company is not registered in the EU) and registering the declaration.
Legal.ge is your reliable partner for operating in the European market. Our platform gives you access to lawyers with deep knowledge of European digital law. Do not let regulations hinder your global growth. Consult with Legal.ge experts and turn compliance into your competitive advantage.
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