Compliance

Compliance
About 1 min read

The state of demonstrating strict compliance with the laws of the country where the AI tool is introduced, industry-specific regulations, internal security policies, and ethical guidelines.

Also known as
regulatory compliancestandards

Detailed explanation

As of 2026, AI compliance has moved beyond mere recommendations to legally binding obligations. With the high-risk AI obligations of the EU AI Act taking effect (scheduled for August 2026) and the 'Basic Act on Artificial Intelligence' being implemented in South Korea, regulatory compliance takes precedence over technical performance when choosing tools. This includes data privacy (GDPR, Personal Information Protection Act), copyright protection, algorithmic transparency, and bias elimination, serving as a core benchmark to prevent legal risks and punitive fines for enterprises.

Why It Matters in Tool Selection

Using non-compliant AI tools can lead to fines of up to 7% of global revenue or service suspension orders. Especially in high-risk sectors such as finance, healthcare, and human resources (HR), adopting tools with unverified compliance can deal a fatal blow to corporate trust.

What to Look For

  • Whether it holds ISO/IEC 42001 (AI Management System) or ISO 27001 certification
  • Whether it falls under 'high-impact AI' according to the Korean Basic Act on Artificial Intelligence and the existence of a risk management plan
  • Whether it provides an 'Opt-out' option to prevent input data from being reused for model training
  • Verifying whether the data residency is local or within an allowed jurisdiction

Example

An example of preparing for the high-risk AI regulations taking effect in 2026 by verifying, when adopting a hiring AI tool, whether it regularly diagnoses bias based on gender and age and provides the resulting 'Model Card' or transparency report.