Compliance

AI Compliance

CEOs face a fast-tightening AI regulatory landscape where missteps can lead to financial penalties, reputational damage, and regulatory scrutiny.

Ludlow Research helps executives implement AI compliance frameworks, including Human-in-the-Loop (HITL) oversight and AI Compliance Officer support—ensuring systems are defensible and aligned with evolving rules.

EU AI Act (Phased; High-Risk Systems – August 2, 2026)
Requires human oversight for high-risk AI, including financial decision systems. Fines reach up to €35 million or 7% of global turnover.

Colorado AI Act (SB 24-205; Effective June 30, 2026)
Mandates risk assessments and governance for high-risk AI impacting consumers. Violations treated as deceptive trade practices, with penalties up to $20,000 per violation.

California AI Transparency Act (SB 942; Effective January 1, 2026)
Requires disclosure and watermarking of AI-generated content. Enforced by the Attorney General with penalties up to $5,000 per violation, per day.

SEC Enforcement

The Securities and Exchange Commission is increasing scrutiny of AI disclosures, particularly around accuracy and risk in public filings. Companies may soon be required to formalize AI governance—making proactive compliance a strategic advantage.