⚖️ EU AI Regulations Update

Author

Liam Gill
March 22, 2025

In partnership with

EU AI Act’s Code of Practice

The latest draft of the EU AI Act’s Code of Practice has been released ahead of a May deadline, providing guidance for general-purpose AI (GPAI) providers on compliance. The Code clarifies obligations around transparency, copyright, and systemic risk mitigation, with penalties for noncompliance reaching up to 3% of global revenue. While the EU is positioning itself as a leader in AI regulation, U.S. pressure for deregulation—particularly from the Trump administration—could influence the final wording of key provisions.

This tech company grew 32,481%...

No, it's not Nvidia... It's Mode Mobile, 2023’s fastest-growing software company according to Deloitte.

Just as Uber turned vehicles into income-generating assets, Mode is turning smartphones into an easy passive income source, already helping 45M+ users earn $325M+ through simple, everyday use.

They’ve just been granted their stock ticker by the Nasdaq, and you can still invest in their pre-IPO offering at just $0.26/share.

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

Implications for Startups

This evolving regulatory landscape presents challenges and opportunities for AI startups operating in or expanding to Europe. The transparency requirements mean AI companies must document their models and provide accessible compliance information for downstream users. However, the most immediate concern remains copyright compliance. The current draft relies on vague terms like "best efforts" and "reasonable measures," leaving room for interpretation but also uncertainty. To avoid potential legal risks, startups training AI on publicly available data should closely monitor how the final Code defines copyright obligations.

Preparing for Compliance

As AI regulations tighten, startups should take proactive steps to align with emerging standards. This includes tracking the final version of the Code, preparing detailed documentation of AI model training data, and implementing mechanisms to handle copyright complaints efficiently. With the European Commission still refining enforcement details, startups should anticipate further clarifications that may either ease compliance burdens or introduce stricter obligations. Regardless of the final language, startups looking to operate in the EU will need to adopt a more structured approach to AI governance to stay ahead of regulatory risks.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Hire an AI BDR & Get Qualified Meetings On Autopilot

Outbound requires hours of manual work.

Hire Ava who automates your entire outbound demand generation process, including:

  • Intent-Driven Lead Discovery Across Dozens of Sources

  • High Quality Emails with Human-Level Personalization

  • Follow-Up Management

  • Email Deliverability Management