EU AI Act: Summary of Potential Impacts on Digital Commerce, Experience Software, and CX Process Design

This IDC Perspective provides a comprehensive overview of the EU AI Act, detailing its phased implementation, compliance requirements, and penalties for noncompliance. Scheduled to take effect in 2024, the Act classifies AI systems into four risk categories - unacceptable, high, limited, and minimal risk - each with specific regulatory requirements aimed at safeguarding user rights and safety. The document highlights the significant implications for digital commerce, projecting the risk profiles for various applications such as ecommerce platforms, digital experience platforms, and customer data platforms. It meticulously outlines the compliance obligations for AI applications, emphasizing transparency, especially in AI-driven content modifications and data processing. This analysis serves as a crucial guide for businesses to prepare for the upcoming regulations, ensuring that their AI systems align with the EU's stringent standards for safety, transparency, and ethical usage."With the EU AI Act, the stakes for noncompliance have never been higher," says Heather Hershey, research director, Worldwide Digital Commerce at IDC. "Fines reaching up to 6% of total worldwide annual turnover can be potentially added to penalties from existing GDPR, DMA, and DSA legislation with catastrophic impacts on the bottom line of global enterprise business. CX in the EU will need to incorporate regulatory compliance responsibilities with the art and science of experience delivery and design. This evolution underscores the need for an airtight compliance strategy, turning what was once a back-end concern into a boardroom priority."