October 21, 2025

The EU AI Act is here: Why Legal Departments must act now

Artificial intelligence is transforming the workplace – the EU AI Act outlines the obligations companies face and explains why legal departments must act now.

EU AI Act: The Game Changer for AI Compliance
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The EU AI Act as a Gamechanger for the Legal Profession? 

Since August 2024, the EU AI Act has been in force, marking the world's first comprehensive legislation to regulate artificial intelligence. It's not about what AI does, but how it does it. Clear and binding rules now apply to providers, users, developers, and companies alike. The law focuses not on the technology itself, but on the risk posed by its use case. The higher the risk to fundamental rights, safety, or democracy, the stricter the legal requirements. The Act defines four risk categories: unacceptable systems (banned), high-risk systems (subject to strict obligations and conformity assessments), limited-risk systems (requiring transparency), minimal-risk systems (unregulated). As a legal gamechanger, the EU AI Act fundamentally reshapes the role of legal professionals. AI becomes an integral part of the compliance and regulatory framework. 

EU AI Act Compliance is not just for Tech Companies – Legal Teams must prepare now 

 The AI Act doesn’t only concern developers. It also affects any company that uses AI or integrates AI-driven solutions into their operations (SaaS tools or third-party providers). Under the AI Act, the deployer of an AI system, meaning the organization that uses it in its own processes, remains legally accountable for ensuring compliance, even if the technology is sourced externally. This includes obligations to verify that the system meets the applicable risk category requirements, maintain documentation, and implement safeguards. Legal departments must understand and implement these duties to identify risks, adjust contracts, and establish governance structures. Losing oversight of where AI is used and what obligations arise can create serious compliance gaps and liability risks. Most affected are:  

  • In-house counsel, who oversee legal compliance of AI systems  
  • Law firms, advising clients on AI risks and contract clauses  
  • Compliance teams, classifying and documenting high-risk system 

Where Is AI Risk Hiding in Your Legal Workflow? 


AI is already embedded in daily legal practice - often without being explicitly recognized as such. In HR, algorithms support the screening of job applicants. Legal operations use AI for deadline monitoring and document analysis. During due diligence, AI helps assess large data sets efficiently. Client services now include chatbots and automated contract generation. Compliance systems monitor transactions for risks and violations. Legal research is accelerated through AI-assisted tools for case law and legislation. 

Many of these applications may soon fall under the "high-risk" category, which comes with strict requirements around transparency, data quality, human oversight, and documentation. Identifying where and how AI is used in your organization now is essential to ensure legal certainty and avoid future fines or reputational damage. 

Why now is time to act? Understanding the Legal Implications of AI 


The AI Act increases legal accountability. Legal teams must not only ensure compliance but also actively shape AI processes within their organization. This opens new advisory opportunities for law firms, from system classification and risk assessment to AI-specific contract clauses. In-house teams will need to roll out internal policies, training, and auditing procedures. 

Now is the time to lay the groundwork. The implementation period is short, and obligations apply as soon as the relevant system types become regulated. Start now by creating an inventory of AI systems, conducting classification, and clarifying governance responsibilities (legal, technical, strategic). Position yourself as a key contact for secure AI use and protect your organization from poor decisions and potential legal or reputational fallout. 

Checklist for Legal Teams: 

  • Where is AI used internally or via third-party service providers? Don’t overlook SaaS platforms or client solutions. 
  • Which systems qualify as high-risk or are outright prohibited? Pay special attention to systems used for hiring, credit scoring, or biometric identification. 
  • Do you have an internal AI policy and clearly defined responsibilities? Who documents, who audits, who decides? 
  • Are you prepared for questions from regulators or formal audits? Is your AI usage traceably documented? 

Conclusion 

AI is no longer a topic for the future. The EU AI Act directly impacts every legal and compliance professional responsible for operational oversight. Now is the moment to deepen your knowledge, implement governance frameworks, and perform internal audits. Taking early steps not only mitigates risks and safeguards your organization but also unlocks new opportunities in the rapidly evolving AI regulatory landscape.

Provide your legal team with the right tools to transparently track AI usage, correctly classify systems under the AI Act, and streamline compliance documentation. Begin today and leverage your AI compliance as a competitive edge. 

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More about the implications of the EU AI Act: An overview of our blog series for you (coming soon):

  • Part 2 - Classify or fail: How to crack the AI risk code in the EU AI Act
  • Part 3 - High-Risk AI in Companies – Obligations and Risks under the EU AI Act
  • Part 4 - Smarter Than Legal? AI, Ethics & the New Rules of the Game
  • Part 5 - AI Compliance Strategy: How Companies and Law Firms Can Establish Future-Proof AI Governance

Download our free checklist and check whether your systems meet the requirements.