EU AI Code of Practice Live: Global Firms Must Act Now

The European Union's General-Purpose AI Code of Practice has officially taken effect, marking a crucial step in the implementation of the EU AI Act, the world’s first comprehensive legal framework for artificial intelligence. This voluntary, yet influential, set of standards for General-Purpose AI (GPAI) systems was published by the European Commission and the EU AI Office.

Wayne Cleghorn, a partner at Excello Law and a member of the working group that helped shape the Code of Practice, has urged businesses to promptly assess whether their AI systems fall within the scope of this new regime. Cleghorn highlighted the intensive and fast-paced nature of the Code's development, describing it as a "world first." He noted that the final text represents a consensus built under significant time pressure, serving as a "best-effort starting point" that will need to evolve but crucially "establishes foundational norms for AI governance."

While the Code of Practice is voluntary, organizations that formally adopt it stand to benefit from simplified enforcement procedures under the EU AI Act. However, even those choosing not to sign are still obligated to demonstrate compliance with the relevant legal requirements outlined in the Act.

The reach of the EU AI Act extends beyond businesses based within the EU. Companies in the UK, US, and other international jurisdictions that develop or deploy AI systems intended for the EU market could be directly impacted. It is imperative for these businesses to assess their AI systems and categorize them according to the Act's definitions of 'unacceptable,' 'high,' 'limited,' or 'minimal risk,' and subsequently apply the corresponding compliance obligations.

The EU AI Act, which became law on August 1, 2024, is being phased in over several years. August 2025 marks a critical implementation milestone, requiring all 27 EU member states to appoint Notifying Authorities and Market Surveillance Authorities, publish their local penalty frameworks, and report on the readiness of their national AI oversight infrastructure. This phase is expected to reveal the practical scale of the EU’s AI regulatory framework and provide valuable insights into how each member state intends to enforce the law, as well as the likely consistency of enforcement across the Union.

To assist businesses in understanding their obligations, supporting documentation has been released alongside the Code, including an AI Model Documentation Form and detailed Guidance for General-Purpose AI System Providers. This landmark moment in AI regulation underscores the necessity for companies globally to gain a firm understanding of the AI systems they develop, deploy, or use. Proactive assessment of how the EU AI Act, and overlapping regulatory regimes, apply to their operations is no longer optional, often necessitating multidisciplinary internal teams and specialized legal and regulatory advice.