The EU AI Act is now in effect, and important compliance deadlines are coming fast. Starting August 2, 2025, companies must meet new transparency and reporting requirements for general-purpose AI (GPAI) models. But here’s the real question: Do you even know where all your AI is? If the answer is no, your company is already at risk. AI systems are likely hiding everywhere in your business. Marketing teams use chatbots, HR runs resume screening software, finance has fraud detection systems, and sales teams deploy lead scoring platforms.
Gartner warns that by 2027, 75 % of employees will be building or modifying technology outside of IT’s visibility—up from 41 % in 2022. This echoes the same phenomenon with AI: if you haven’t discovered and catalogued every AI system in your business, many are likely hiding in plain sight—from chatbots and resume screeners to fraud detection and lead scoring tools.
The EU AI Act requires organizations to have full visibility into their AI ecosystem. You must identify every AI system in use—whether you built it, bought it, or it came embedded in a third-party tool.
According to Articles 16 and 26 businesses must maintain an AI inventory, classify AI systems by risk level, register high-risk AI, and keep detailed compliance documentation. Without full visibility, you can’t manage risks, meet audit demands, or avoid violations—intentional or not. Beyond financial costs - which can reach up to €35 million or 7% of global revenue - regulatory investigations disrupt operations, waste executive time, and damage your reputation. Further, emergency compliance efforts tend to cost 3-5 times more than planning ahead and rushed fixes under regulatory pressure often create more problems.
Companies must maintain detailed records of what AI is in their ecosystem, how AI systems work, what data they use, how they make decisions, and what their performance is over time.
In addition, for high-risk AI systems, you need:
This applies to third-party AI services too. Regardless of whether you built it, bought it, or it is embedded within your third-party tools, you're still responsible for its compliance with the applicable regulations.
Most organizations face the same visibility challenges across four key areas:
Below are examples of the costs associated with poor AI visibility.
Holistic AI's automated platform finds every AI system in your organization within 24-48 hours, with zero disruption to your operations. You get automatic classification by risk levels and ready-to-use compliance documentation for each system.
Manual discovery can't keep up with modern business complexity. IT teams spend months interviewing departments, but employees don't always know their tools use AI. New systems get deployed faster than you can track them, and by the time you finish your inventory, it's already outdated.
The August 2nd deadline is almost here. Not knowing what AI systems you have puts your company at serious risk, but regulatory compliance can be automated and audit-ready with Holistic AI.
Our platform transforms the process of meeting complex compliance requirements into four simple steps:
Our automated monitoring also ensures you stay compliant with real-time alerts for new requirements. No more guesswork, no more surprises.
Start your free EU AI Act Readiness Assessment today and get the complete AI visibility you need for full regulatory compliance.
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