What are the main risks of AI in business?

Hallucination and data exposure in detail

AI-generated answers can include invented sources or incorrect calculations. Systems with search or retrieval can still misread or misrepresent the source. Check consequential claims against the underlying document or calculation. Data risks depend on the account, settings, connections and contract; a brand name alone does not establish whether business information is appropriately protected. Examine what the system can retrieve as well as what staff type into it.

Regulatory risk and the EU AI Act

For EU AI Act work, identify the intended use and whether your organisation is a provider, deployer or another regulated actor. High-risk duties are role-specific: provider conformity assessment is different from deployer monitoring and oversight. Registration and fundamental-rights assessment have particular scopes. Article 4 literacy measures and relevant transparency duties may apply outside the high-risk regime. The general application date and the later high-risk dates should be mapped to the actual provision, including transition rules.

Legal references reviewed 4 October 2026. High-risk provisions have phased application and transition rules. Sources: Commission timetable, deployer duties, impact-assessment scope and literacy guidance.