Posts

How the EU AI Act Is Changing Business and Citizen Protection

/0 Comments/in , /by

 

 

On the 7th of June, Dr. Galya Mancheva appeared on Bulgaria ON AIR to discuss the impact of the EU AI Act on business and citizen protection. In her capacity as board member of the Bulgarian Association of Information Technologies (BAIT), she explains how the European Union’s Artificial Intelligence Act will reshape business practices and enhance citizen protection. As one of the first comprehensive legal frameworks on AI globally, the Act introduces new standards that apply not only to companies within the EU but also to international businesses whose AI systems reach European users.

 

In the interview, Dr. Mancheva highlights how the new regulation brings the needed clarity by categorizing AI systems by risk and setting clear rules around transparency, safety, and accountability. She emphasises that the AI Act is not a barrier to innovation, but a foundation for building trust and ethical AI practices in the EU. Dr. Mancheva urges companies to move beyond fear and embrace AI, emphasizing that the EU AI Act is designed to ensure all stakeholders can benefit from AI in a safe and well-regulated environment. She emphasises the importance of business readiness, warning that many Bulgarian companies are still behind in adapting to the upcoming legal requirements. BAIT is working actively to raise awareness and help businesses align with the new standards.

 

Some of the consequences of failing to comply to the Act are also mentioned. The regulation allows for fines of up to €35 million or 7% of a company’s global annual turnover, depending on the nature and severity of the violation. But beyond the financial risk, Dr. Mancheva notes that companies also face reputational damage if they are found to be using AI irresponsibly.

 

A big focus of the interview is how the AI Act also plays a crucial role in protecting individuals. It guarantees that EU citizens have the right to know when they are interacting with AI and ensures their personal data is not being misused or exploited by black box algorithms. By banning the most dangerous applications and demanding transparency from high-risk systems, the regulation aims to build public trust in AI technologies.

 

Dr. Mancheva compares the regulation to simple traffic rules. “If we want to have many cars on the road,” she said, “we need clear rules that protect both drivers and pedestrians. That’s the only way we can all move forward safely.” In the same way, the AI Act creates a safe structure in which innovation can flourish without putting fundamental rights at risk.

Dr. Mancheva believes that the AI Act is carefully structured, under the guidance of many global business and political figures, focusing on the message that innovation should never come at the expense of accountability and human rights. She sees the AI Act not as a limitation, but as a framework for building responsible technology that serves both individuals and businesses.

 

AI Innovation and Risk Management in the Public Sector

/0 Comments/in , /by

In a recent presentation hosted by NDB, Dr. Galya Mancheva explored the transformative role of AI in the public sector and the urgent need for ethical governance.  She called on government institutions to lead by example in adopting AI responsibly and transparently.

Dr. Mancheva explained that while AI offers new opportunities for public administration (from predictive policy tools to digital citizen services) its use must be rooted in strong internal controls and public accountability. Unlike in the private sector, decisions made with AI in public institutions often touch on basic rights, such as access to healthcare, education, or social support.

“Governments must show what responsible AI looks like,” said Dr. Mancheva. “When AI is used to make decisions that affect citizens’ lives, transparency, fairness, and human oversight are non-negotiable.”

She stressed that the EU AI Act provides the tools to ensure this happens. By categorizing AI systems by risk and requiring transparency from high-risk applications, the Act protects citizens while allowing space for innovation. In the public sector, this means guaranteeing that people know when they are interacting with AI and that their data is handled with care.

Dr. Mancheva also emphasized the need for national strategies that combine innovation with risk awareness. She warned that without proper governance, the public sector risks losing citizen trust, especially if algorithmic decisions go unchecked.

AI Innovation and Risk Management in the Financial Sector

/0 Comments/in , /by

In the beginning of June, Dr. Galya Mancheva spoke at an event hosted by NDB, addressing the growing impact of AI on Bulgaria’s financial sector, as she outlined how the European Union’s Artificial Intelligence Act offers a critical framework for balancing innovation with responsible risk management.

Dr. Mancheva emphasized that financial institutions have much to gain from AI adoption. The financial sector covers a lot of ground, from automating customer service and enhancing fraud detection to optimizing credit scoring. However, a warning was made that the benefits of AI can only be realized when systems are transparent, explainable, and aligned with legal and ethical standards.

She pointed out that many financial firms still rely on black-box models that risk introducing bias or error, particularly in decisions that affect people’s financial rights. Under the EU AI Act, such high-risk applications will require rigorous documentation, transparency, and accountability measures.

“This is not about slowing innovation. It’s about building trust. AI systems in finance must be safe, fair, and explainable, especially when they affect real lives.”

Dr. Mancheva further noted that the AI Act sets a new compliance benchmark, with potential fines reaching €35 million or 7% of global turnover for violations. But the true cost, she argued, is reputational: companies seen as irresponsible in their AI practices may lose the trust of both clients and regulators. The AI pioneer urges financial institutions to act now, not later, and to treat regulatory readiness as part of their innovation strategy.

The EU AI Act: Hidden Business Opportunities No One Is Talking About

/0 Comments/in , /by

 

Beyond Compliance: How Smart Businesses Can Profit from AI Regulation

Most discussions about the EU AI Act focus on compliance, fines, and regulatory challenges. But what if we told you that this law isn’t just about risk management—it’s also a massive business opportunity?

While many companies scramble to meet new requirements, those who think ahead can leverage this regulation to unlock new markets, increase trust, and gain a competitive edge.

The Hidden Business Opportunities of the AI Act

 First-Mover Advantage: Trust Becomes a Market Differentiator

The AI Act forces businesses to ensure fair, transparent, and accountable AI—but instead of treating this as a burden, companies can use it as a trust signal.

  • Customers and businesses will prefer AI solutions that are “EU AI Act Certified.”
  • Investors will favor AI startups that are regulation-proof, reducing long-term risks.
  •  Early adopters will shape industry standards before regulations become stricter worldwide.

Opportunity: If your business builds AI tools, positioning yourself as a compliant, ethical AI provider will give you a major advantage over competitors who lag behind.

New Revenue Streams: AI Compliance as a Service (AI-CaaS)

Just like GDPR gave rise to data privacy consulting and compliance software, the AI Act will create a massive market for AI compliance solutions.

  •  Consulting firms and law firms can offer AI compliance audits and certification services.
  •  Tech startups can develop AI monitoring tools that help businesses detect bias, ensure explainability, and manage compliance risks.
  •  “AI Safety-as-a-Service” will become a new SaaS category, helping companies monitor their AI in real time.

Opportunity: If you’re in tech, law, or compliance, offering AI risk assessment and monitoring services could be a huge revenue driver.

 Mergers & Acquisitions: The Rise of “Regulation-Ready” AI Startups

Investors are already shifting focus towards AI companies that are regulation-compliant from day one.

  • Corporate buyers will look for AI startups with built-in compliance, making them prime M&A targets.
  • Startups that integrate AI governance, bias detection, and human oversight tools will be more attractive to enterprises that need compliant AI solutions fast.
  • Companies that fail to adapt may find themselves blocked from the EU market, leading to fire-sale acquisitions of non-compliant AI firms.

Opportunity: If you’re a startup, embedding compliance and AI governance into your product now will make you far more valuable in the future.

AI Talent War: Demand for Compliance & Ethical AI Experts

Companies will need AI governance officers, bias auditors, and compliance engineers—roles that barely existed a few years ago.

  •  AI compliance jobs will skyrocket as businesses scramble to build internal AI ethics teams.
  •  Universities and online platforms will introduce new courses on AI law, bias mitigation, and regulatory compliance.
  • Companies that attract and retain AI governance experts will have a huge advantage over those struggling to keep up.

Opportunity: If you’re in HR, edtech, or training, there’s an emerging market for AI compliance education and talent development.

 Market Expansion: EU Compliance as a Global Standard

Regulations like GDPR didn’t just impact Europe—they became the global benchmark for data privacy. The same is likely to happen with the AI Act.

  •  Non-EU businesses will have to comply if they want to operate in Europe.
  • Global enterprises will apply EU AI standards worldwide to simplify compliance.
  •  Companies that align with EU AI regulations early will be better prepared for upcoming AI laws in the U.S., Asia, and beyond.

Opportunity: Businesses that go beyond minimum compliance can sell EU-certified AI solutions globally, setting the benchmark for ethical AI worldwide.

Adapt Fast, Win Big

The EU AI Act is not just about avoiding fines—it’s about seizing new business opportunities. Companies that act now can:

✅ Build trust with customers and investors
✅ Create new AI compliance products & services
✅ Attract top AI talent
✅ Position themselves for global expansion

Rather than seeing regulation as a roadblock, forward-thinking businesses will use it as a catalyst for growth.

So the question isn’t whether your business will comply—but how you’ll turn compliance into your next big business advantage.

EU AI Act Compliance: A Step-by-Step Guide for Businesses

/0 Comments/in , /by

 

With the EU AI Act now in force, businesses deploying AI must ensure compliance or risk heavy penalties. But what does compliance actually involve? This guide breaks down key requirements and practical steps to help organizations align with the new regulations.

Understanding Your AI Risk Category

The EU AI Act classifies AI systems into four categories:

  • Unacceptable Risk (banned, e.g., social scoring)
  • High Risk (strict compliance needed, e.g., AI in hiring & healthcare)
  • Limited Risk (transparency requirements, e.g., chatbots)
  • Minimal Risk (no additional obligations)

Action Step: Businesses must audit their AI systems to determine their risk level and compliance obligations.

Key Compliance Requirements for High-Risk AI

If your AI system is high-risk, you must ensure:
– Data governance – AI must be trained on high-quality, unbiased data
–  Transparency & explainability – Users must understand how AI makes decisions
– Human oversight – AI systems cannot operate without human intervention

– Robust security measures – Cyber resilience is mandatory

 Action Step: Develop a compliance roadmap to document your AI’s training data, risk mitigation strategies, and monitoring process.

 How to Prepare for AI Act Compliance Audits

EU regulators will conduct strict audits on high-risk AI systems. Companies should:
–  Perform internal AI audits before regulatory inspections
–  Create a risk management framework tailored to their AI use case
–  Maintain detailed compliance documentation

 Action Step: Work with AI compliance experts to ensure your AI systems meet legal standards before audits begin.

Penalties for Non-Compliance

The EU AI Act enforces steep fines for violations:
– Up to €35 million or 7% of global annual turnover for non-compliance with banned AI practices
– Up to €15 million or 3% of turnover for failing to meet high-risk AI requirements

Action Step: Invest in AI compliance consulting to avoid costly penalties and reputational damage.

Navigating AI regulation is complex, but compliance is a business necessity. Partnering with AI Act experts ensures your business stays ahead of regulatory changes while leveraging AI safely and ethically.