The Math

Fortune 500 turnover of $50B → 7% = $3.5B maximum penalty. Even 3% non-compliance cases reach nine figures. GDPR caps at 4%; the AI Act’s 7% makes it the largest enterprise regulatory exposure.

What’s Funded

Dedicated AI compliance function (FTE), legal counsel, external audit engagement, system documentation investment, employee training, technical remediation of existing systems. Multi-million-dollar line items for large enterprises.

Risk Calibration

Not every AI system creates 7% exposure — only high-risk ones. Risk-weight your portfolio. Low-risk AI systems get light touch; high-risk systems get full investment. Overspend on low-risk = wasted budget.

Board-Level Visibility

AI Act compliance is board conversation now. Directors want to know exposure, mitigation posture, residual risk. Prepare the briefing. ‘We’re on it’ without numbers doesn’t survive scrutiny.

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