Audit of AI Solutions for Risk Classification According to the EU AI Act

This case study presents an audit project focused on assessing the risks that AI may generate in a construction enterprise within the scope of the applied solutions. The risk assessment of AI solutions in accordance with the EU AI Act (Artificial Intelligence Regulation in the European Union) involves the identification, classification, and management of risks that AI systems may pose in the context of safety, privacy, health, human rights, ESG (Environmental, Social, and Governance), and other key areas.

Challenges:

  1. Identifying and assessing risks in two separate AI solutions.
  2. Evaluating technological bias in algorithms.
  3. Data quality.
  4. Algorithm quality.

Benefits:

Conducting an audit in which a company identifies and assesses the risks associated with the implementation of artificial intelligence (AI) in accordance with the EU AI Act guidelines can bring several benefits.

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Here are the five most important ones:

1. Regulatory Compliance

Conducting the audit ensures that the company’s AI systems comply with the EU AI Act, minimizing the risk of financial and legal penalties. Early identification of potential violations allows for quick corrections, avoiding negative legal and reputational consequences.

2. Increased Trust from Customers and Partners

Demonstrating compliance with rigorous AI regulations builds trust among customers, business partners, and investors. Transparency and ethical use of AI technology can strengthen the company’s reputation as a responsible market player.

3. Reduction of Operational and Financial Risk

The audit identifies potential threats related to AI systems (e.g., technological bias or improper data processing). As a result, the company can implement risk management mechanisms, helping to avoid costly operational, financial, or reputational issues.

4. Improvement in AI System Performance

The risk audit allows for optimizing AI systems in terms of compliance, performance, and security. This helps detect gaps or errors in algorithm operations, allowing for improvements, leading to greater operational efficiency and better business results.

5. Protection of Users’ Rights and Reduction of Discrimination Risks

The EU AI Act-compliant audit ensures that AI algorithms do not cause discrimination and adhere to human rights standards. Protecting user rights reduces the risk of legal disputes, customer loss, and reputational damage caused by AI systems that may lead to discrimination or privacy violations.

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