Cranium, Microsoft, KPMG Launch EU AI Hub

Artificial intelligence (AI) security firm Cranium, in collaboration with Microsoft and KPMG, on Thursday announced the launch of the EU AI Hub to help companies navigate the regulatory framework laid out in the EU AI Act.

The EU’s regulatory framework represents the broadest and most stringent rules surrounding artificial intelligence that will impact not just EU businesses, but international companies doing business in the EU as well. Much like with the EU’s General Data Protection Regulation (GDPR) did for data privacy regulation, the AI Act will likely become the global gold standard for AI regulation.

The EU passed the AI Act in March 2024, establishing tough guidelines and penalties for businesses using artificial intelligence. Those regulations will roll out in phases between 2024 and 2027 targeting high-risk AI applications. Companies running afoul of the rules could face fines of up to 7% global turnover, or $38 million, whichever is higher.

Cranium’s EU AI Hub seeks to make the job of compliance an easier and more streamlined task for companies. In an interview with InformationWeek, Sean Redmond, director of the EU AI Hub at KPMG, says the overall goal is to provide clients with a one-stop shop for AI deployment compliance. The European Union has created some of the most comprehensive rules for technology firms around AI safety and data privacy that will impact multinational companies.

Related:EU AI Act Takes Another Step Forward

“It’s going to be an evolving landscape,” Redmond says. “We have our Digital Services Act, our Digital Markets Act, [GDPR], and the EU AI Act, and these are all interlinked with each other. So, it’s a very complex environment. There is constant guidance and updates coming through from a legislative perspective. For now, the focus is with the EU AI Act, and we’re really focused on our clients’ ability to embed that within the organization so they can really deploy AI in a safe manner.”

The hub will combine KPMG’s Trusted Responsible AI Framework with Cranium’s enterprise software platform, along with Microsoft’s AI technologies to create new tools and help developers and businesses through the AI deployment process.

Daniel Christman, director of AI Programs at Cranium, in a phone interview says clients pushed for a solution as they rush to deploy GenAI systems. “Now that the EU AI Act has really come into being and the requirements have been defined, they’re looking for a partner that can really help them scale out the compliance components across all their systems.”

Christman says the EU AI Act will likely influence legislation in the US not just at the federal level, but on a state-by-state basis, adding more complexity to the regulatory landscape. “Now that the [EU AI Act] is enacted, there’s a standard bearer that the state and local agencies, and some of the federal agencies can point to -- so we’ll likely see the US following suit in the same way they did with GDPR, with California taking the lead.”