The imminent entry into force of the European Union's Artificial Intelligence Act (EU AI Act) marks a milestone in European technological regulation. This regulation, which will be fully applicable starting in August, aims to ensure transparency and minimize risks associated with the use of AI, establishing a robust legal framework for its development and application. Published in the Official Journal of the European Union in July 2024 and effective from August 2 of the same year, the law has already introduced restrictions on certain AI systems and begun to require literacy and confidentiality standards in the sector. Europe, facing the proliferation of fake news and AI-generated content of dubious origin, felt the urgency to protect users and establish clear rules. The EU AI Act adopts a risk-based approach, classifying AI systems according to the level of danger they pose to individuals. Cristina Villasante, a partner at Ecija, highlights that the regulation imposes differentiated obligations based on risk, from prohibitions on unacceptable uses to strict requirements for high-risk systems. This provides legal certainty for both developers and users, reinforcing the protection of fundamental rights, transparency, and trust in technology. Gil Blancafort, founder of V-Proof, notes that the law ends the "black box" of AI, shifting technical responsibility to company management. According to Blancafort, the demand for legal guarantees has stalled projects in large companies, as best practice manuals prove insufficient. To address these challenges, V-Proof has created a technological infrastructure that ensures data traceability and immutability, allowing companies to demonstrate regulatory compliance to regulators. The law includes simplified compliance mechanisms for SMEs and startups, facilitating their access to regulatory sandboxes and promoting support initiatives, as Villasante recalls. Ricardo Michel Reyes, CTO of Sintonai, emphasizes that this framework allows startups to compete on equal terms with large tech companies, especially in sectors that handle sensitive data and require certifications and audits. The regulation also benefits companies that wish to keep their data in Europe or deploy on-premise solutions, reinforcing control over information. For companies like Sintonai, the law helps to "democratize trust," enabling smaller firms to demonstrate the security of their solutions to clients. Justo Hidalgo, AI director at Adigital, highlights that the early integration of regulatory requirements facilitates strategic planning and investment attraction, as well as improving the international reputation of European companies. This harmonized framework responds to a historical demand from the technology and investment sector in Europe. From Maisa, a Spanish AI startup, co-founder David Villalón positively assesses the regulation, although he warns that regulations must evolve alongside technology. Villalón emphasizes the need for companies to dynamically adapt to regulatory changes, as they already do at Maisa, where systems are automatically updated to meet new requirements. Villasante points out that the main challenge for the digital ecosystem will be integrating data governance, technical documentation, and oversight requirements without stifling innovation or excessively increasing costs, especially for SMEs. Reyes warns that bureaucratic burdens and compliance costs could slow innovation and shift investments to markets with more flexible regulations, such as the US or Asia. David Zafra, CEO of HeyDiga, calls for proportionality in the application of the law, differentiating between AI uses that require different levels of control. He demands that the regulation does not become a barrier only surmountable by large companies. Íñigo Laucirica, partner at Samaipata, believes that the law provides legal certainty and can accelerate AI adoption in strategic sectors, although he warns that, as with the GDPR, it could impact agility and innovation. Enrique Penichet, from Bigban Investors and Draper B1, summarizes the general sentiment: in the short term, the law means more costs and procedures for startups, but in the long term, it could become a competitive advantage for those who integrate regulation from the outset, as happened with the GDPR, which ultimately became a global standard. Source: expansion.com