How to Write AI Compliance Policies for Businesses: EU AI Act & UK Framework

The New AI Compliance Landscape

The EU AI Act came into force in 2024 and is being phased in through 2026-2027. Any business operating in the EU or selling to EU customers must understand its obligations — particularly if using AI in HR, recruitment, credit decisions, or customer-facing systems.

In the UK, the AI Regulation White Paper set out principles-based governance, with sectoral regulators applying rules to their domains. Both regimes require documentation.

What an AI Compliance Policy Must Cover

  • Inventory of AI systems — what AI tools you use and for what purpose
  • Risk classification — is each system high-risk, limited-risk, or minimal-risk under the EU AI Act?
  • Human oversight mechanisms — who reviews AI decisions and how
  • Data governance — training data sources, bias assessment, GDPR compliance
  • Transparency obligations — when must you tell users they're interacting with AI?
  • Incident response — what to do when AI produces harmful or biased outputs

High-Risk AI Uses That Require Extra Documentation

Under the EU AI Act, the following are classified as high-risk and require conformity assessments:

  • AI used in CV screening and recruitment shortlisting
  • Credit scoring and insurance underwriting
  • Educational assessment tools
  • Biometric identification systems
  • Critical infrastructure management

How Government-Linked Companies Stay Compliant

Organisations working with public sector contracts (including Sweden's state-owned enterprises, NHS-linked bodies in the UK, and EU institutions) face additional scrutiny. They typically implement:

  1. Quarterly AI audits with documented findings
  2. A designated AI Compliance Officer
  3. Staff training records for AI system users
  4. Supplier due diligence for third-party AI tools

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