AI Compliance Requirements

EU AI Act: Cross-Border Reality

Organizations deploying AI in high-risk use cases increasingly face EU AI Act requirements through customer operations, data flows, or market presence. For many US companies, EU compliance becomes the de facto global standard rather than a regional add-on.

Non-Compliance Penalties

EU AI Act Enforcement Begins August 2026.

Fines scale by violation type and apply to different organizations.

High-Risk AI Deployment Penalties

€15M or 3% global turnover

Applies to organizations deploying AI in regulated sectors: finance, healthcare, education, and employment.

Common Compliance Failures

• No systematic misuse testing (Article 9)
• Missing compliance documentation
• Inadequate bias detection

Why This Is Hard

Organizations face structural barriers to meeting Article 9 compliance expectations:

"Reasonably foreseeable misuse" is undefined
Requires understanding of AI exploitation techniques
Needs specialized testing infrastructure
Manual approaches don't scale

RedStream Evidence Mapping

How RedStream testing is designed to support audit-ready compliance evidence

Article 9 "Reasonably Foreseeable Misuse" → RS-7 Adversarial Prompt Library

Planned time-stamped test logs from our adversarial prompt scenarios are designed to provide systematic documentation of misuse assessment, complete with MITRE ATLAS tactic mapping and risk scoring.

Article 10 Data Governance → Planned Dataset Audit Module

Automated analysis of training data sources and bias detection metrics provide verifiable evidence of data governance compliance and quality standards.

Article 11 Technical Documentation → Automated Report Generator + MITRE ATLAS Mapping

Planned structured compliance reports with embedded test results, risk assessments, and detailed methodology documentation designed to support audit requirements. RedStream focuses specifically on adversarial testing and misuse scenario assessment as one component of a comprehensive compliance strategy.

Identify Emerging Threats

Through documenting actual misuse scenarios from the wild, RedStream is designed to test against genuine risks rather than guessing what "reasonable misuse" means.

Standardized testing methodology

Designed to systematically generate evidence and documentation needed to demonstrate thorough testing, archived and accessible for audit purposes.

Documented Reporting for Compliance

Planned to generate compliance evidence and reports needed to demonstrate thorough testing, archived and accessible through a client dashboard.

Designed to support re-testing and monitoring
over time for evolving compliance needs.

Global Regulatory Tracking

EU AI Act – Primary Focus

Clear enforcement timeline: August 2026 | €15M penalties for high-risk violations

United States

The U.S. is shaping future AI compliance norms through voluntary standards that are fast becoming industry expectations.

NIST is leading with its AI Risk Management Framework and ARIA program, which stress-test models using adversarial protocols. RedStream's developing methodology for adversarial testing is designed to support and align with the principles emphasized by NIST's framework and programs.
State-level initiatives in California and New York are creating fragmented compliance needs, pushing companies toward proactive alignment
Many organizations are adopting NIST practices preemptively, anticipating federal requirements

United Kingdom

The UK emphasizes sector-led oversight rather than centralized regulation.

AI Safety Institute conducts frontier model evaluation including adversarial testing
UK firms operating globally often default to EU compliance regimes for operational simplicity

Canada

Canada's federal AI regulation remains uncertain after Bill C-27 failed to pass earlier in 2025.

AIDA would have introduced mandatory risk management for high-impact systems
Cross-border firms may still align with AIDA principles preemptively in regulated sectors

Asia-Pacific

AI regulation is uneven but rapidly evolving across the region.

China requires security reviews for all public-facing models
Singapore and Japan are advancing AI governance frameworks, with Singapore's AI Verify initiative leading

Latin America

Early-stage but accelerating movement toward AI regulation.

Brazil's draft AI Bill draws from the EU AI Act with risk-based classification
Regional discussions push toward baseline alignment with global norms

While our current focus aligns with the EU AI Act, we are closely monitoring global regulatory developments and plan to integrate emerging requirements as frameworks solidify.