The EU’s Artificial Intelligence Act (AI Act), the first comprehensive AI regulation of its kind, begins to take effect this August. While the technical provisions of the Act are complex, the real challenge for General Counsel is not just understanding the rulebook - it’s leading the business through the uncertainty that comes with it.
In this moment of regulatory ambiguity, the most successful GCs will be those who act strategically: setting a clear, values-based vision for AI adoption while remaining agile enough to respond to change. Compliance alone is no longer the benchmark. What matters now is how legal leaders help their organisations use AI thoughtfully, responsibly, and competitively.
Strategy matters more than certainty
The AI Act establishes a novel risk-based framework that regulates a wide array of applications, ranging from recruitment algorithms to sophisticated general-purpose models such as GPT-4. But the landscape is still shifting, definitions are evolving, timelines are staggered, and enforcement approaches will take shape over time.
In this environment, waiting for clarity is a risk in itself. What’s needed is not just technical interpretation, but strategic posture. The most strategic General Counsel are guiding their organisations in answering fundamental questions:
- What do we want to achieve through AI?
- Where are we willing to lead, and where should we be cautious?
- How do we balance innovation with accountability?
These are not legal questions alone. They are leadership questions - and the legal department must have a seat at the table in answering them.
Leading with judgment and agility
At the heart of this challenge is a shift in mindset. AI regulation isn’t a static set of rules; it’s a moving framework shaped by societal values, political currents, and technological acceleration. This calls for judgment, not just rule-following.
GCs must build coalitions across the business - working with HR, data science, operations, and the C-suite to anticipate risk and shape practice, not merely react to it. Strategic legal leaders will embed themselves early in product design, hiring processes, and governance conversations. They’ll ask not just “is this allowed?” but “is this right, and are we ready?”
In doing so, they will position the legal function as a business enabler, not just a regulator.
Defining a strategic response to AI
Rather than getting lost in the weeds of risk categories and reporting requirements, GCs can add the most value by focusing on how the business approaches AI as a whole. This includes:
Establishing a clear internal stance on AI: Not every risk is worth taking. Not every capability is aligned with your values. Set the tone early on what responsible use of AI looks like for your organisation.
Articulating a narrative of trust and accountability: Regulators aren’t the only audience. Customers, investors, and employees want to understand your company’s approach to AI. Legal can help define and communicate that message.
Enabling speed through clarity: In a fast-moving space, ambiguity slows progress. GCs can provide strategic clarity so teams can move confidently, knowing where the boundaries are - and likewise, where they aren’t.
Staying nimble, not rigid: The AI Act won’t be the last word in regulation. Strategic legal leaders build frameworks that can evolve with new guidance, market expectations, and emerging risks.
Talent as a strategic lever
This shift demands a different kind of legal and compliance talent. Not just those with regulatory knowledge, but those with strong business instincts, ethical reasoning, and the ability to partner cross-functionally.
The demand for this talent is growing - and the supply is limited. According to Major, Lindsey & Africa’s 2024 In-House Counsel Compensation Survey, professionals with EU regulatory and AI governance expertise are commanding premium compensation. For legal departments to lead effectively, they must be resourced accordingly.
Vision first, then compliance
The EU AI Act marks a significant regulatory moment, but it’s also an opportunity for General Counsel to redefine their leadership. Strategy must come before checklists. Judgment before instructions. Principles before playbooks.
As AI continues to reshape industries, the companies that succeed won’t just be those who comply fastest; they’ll be the ones whose legal leaders help shape what responsible innovation looks like.
