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The EU AI Act: What does it mean for Switzerland?

Compliance

The EU AI Act will not only have a major impact on the regulation of artificial intelligence (AI) within the EU, but will also affect Swiss companies that participate in the European market or work with EU customers. This article explains how the regulation will affect Swiss companies and what steps they need to take to fulfil compliance requirements.

 

Overview

Swiss companies and the EU AI Act

The EU AI Act marks the beginning of a new phase of AI regulation in Europe. This regulation aims to make AI systems safe, transparent and ethical. Although Switzerland is not part of the EU, Swiss companies are strongly affected, especially if they interact with European customers or are active on the European market. The new standards of the EU AI Act require adjustments in the development and use of AI systems. Swiss companies working in sensitive sectors such as finance or healthcare must take these regulations into account in order to ensure their competitiveness.

Current developments: The EU AI Act and its impact on Switzerland 

The EU AI Act has an impact far beyond the EU and also affects Swiss companies whose AI products are used in the EU. In addition to the requirements of the Swiss Data Protection Act (DPA) and the EU General Data Protection Regulation (GDPR), companies that offer AI-based products or services must also comply with the EU AI Act. This requires comprehensive compliance measures in terms of transparency, risk assessment and data security.

Steps to compliance for Swiss companies

  1. Risk assessment and classification of AI systems: All AI systems must be assessed according to their risks and adapted if necessary. Companies in the healthcare, financial and public sectors are particularly challenged as they work with sensitive data. 
  2. Compliance management: It is essential that Swiss companies implement a system that ensures compliance with the new regulatory standards. This includes, in particular, human monitoring and ensuring data security. 
  3. Data protection and transparency: Cross-border data exchange must fulfil the requirements of the EU AI Act as well as the GDPR and the DPA. Swiss companies working with EU customers should therefore establish processes to fulfil these requirements. 
  4. Employee training: Regular training on the new requirements and their practical implementation is necessary to ensure compliance with regulatory standards.

Regulatory adjustments and challenges 

The adoption of the EU AI Act requires Switzerland to rethink and adapt its own regulations and strategies in the field of AI in order to facilitate cooperation with EU member states. The Federal Council has instructed the Federal Department of the Environment, Transport, Energy and Communications (DETEC) to draw up an overview of possible regulatory approaches for AI in Switzerland by the end of 2024. This analysis will build on existing Swiss law and identify potential approaches that are compatible with the EU AI Act and the Council of Europe's AI Convention. 
The report will include binding horizontal rules for AI and examine the regulatory requirements in terms of compliance with fundamental rights. Technical standards as well as financial and institutional implications will also be considered. 
In addition, Switzerland attaches great importance to international cooperation and is actively participating in the negotiations of the Council of Europe to create a binding legal framework for AI. These negotiations aim to regulate the negative effects of AI and at the same time promote innovation and the protection of human rights.
 

Swiss companies should take the following measures to fulfil the requirements of the EU AI Act

ASC Technologies, with its subsidiary in Cham, Switzerland, supports companies in using AI technology responsibly to fulfil their compliance requirements. With the Recording Insights solution and the integrated AI Policy Engine, companies can identify potential compliance violations more quickly and gain important business insights from their communication data. We rely on Microsoft Azure AI Services and Azure OpenAI to ensure the highest security and data protection standards. It is particularly important to emphasise that sensitive data is never used for training purposes in order to ensure data sovereignty and the protection of information.

Global vision and regulatory adaptability as the key to corporate success

While the EU AI Act has far-reaching global implications for the development and application of AI technologies, it is important to focus on the specific challenges of the Swiss market. Switzerland is in a unique position: it is not a member of the EU, but its close economic ties with the European market mean that Swiss companies are nevertheless affected by the new regulations. This presents both opportunities and challenges, particularly in areas such as data protection, market access and technological innovation.

Trends and their impact on Switzerland

Switzerland benefits from global trends in AI development, particularly through its strong research base and close collaboration with international partners. The country has established itself as a centre of innovation, particularly in the fields of machine learning and automation. According to a report by the World Intellectual Property Organisation (WIPO), Switzerland is one of the leading countries in terms of innovation capability. This position gives Switzerland an advantage, as companies in the country are able to benefit from new technologies and the opportunities offered by the AI Act.

However, a key challenge for Swiss companies is the dual regulation: companies must comply with both the requirements of the Swiss Data Protection Act (DPA) and the regulations of the EU AI Act in order to remain competitive in the European market. Companies that develop AI-based products or services in Switzerland are therefore faced with the task of fulfilling complex compliance requirements from different legal systems.

Specific challenges of the Swiss market

Swiss companies face unique challenges when implementing the requirements of the EU AI Act. These include:

  1. Dual regulation: In addition to complying with the Swiss DPA, companies must also fulfil the requirements of the EU AI Act. This requires harmonisation of compliance measures and poses a particular challenge for companies with cross-border trade. 
  2. Cost efficiency: Implementing EU rules may require significant investment, especially for companies that need to adapt their AI systems. 
  3. International cooperation: Switzerland is actively involved in shaping international AI regulations. Swiss companies must therefore assert themselves in a dynamic international environment and forge partnerships beyond European borders. 

Opportunities for the Swiss market

By implementing the EU AI Act, Swiss companies can secure their competitiveness in the European market and strengthen their innovative power at the same time. The strict requirements of the act open up opportunities for Swiss companies to act as pioneers for safe and ethical AI solutions and consolidate their role in global AI development. In addition to compliance, these regulatory changes also offer opportunities for further development and international collaboration.

How ASC helps

ASC Technologies offers innovative solutions for Swiss companies to fulfil the requirements of the new regulations while strengthening their competitiveness. We offer software solutions that make it possible to integrate both the DPA and EU AI Act requirements and automate compliance. With customised training programmes, ASC Technologies supports companies in being prepared for the regulatory changes and implementing them efficiently.