How EY is navigating global AI compliance: The EU AI Act and beyond

In response to evolving requirements, EY teams have implemented comprehensive changes across the organization, underpinned by significant strategic investment in AI governance.
 

“In building compliance, we’ve invested in cultivating a shared responsibility across the EY global network,” says Yvonne Zhu, Partner, Technology Risk, EY Canada. “AI governance is not just another task – it’s about empowering our people with a long-term commitment to responsible AI. Even with the most robust frameworks and models in place, our success depends on winning the hearts and minds of EY people.”
 

EY’s journey toward compliance with the EU AI Act required a cultural shift and extensive cross-functional coordination. A US$1.4 billion investment in AI transformation efforts has funded initiatives such as targeted training programs that engage staff beyond compliance requirements and foster a proactive approach to responsible AI.
 

The challenge of implementing the EU AI Act requirements across EY’s global organization necessitated centralized coordination, led by the risk management team and supported by cross-functional collaboration. Alexei Ivanov, Partner, Global Risk Management, EY LLP, notes, “Navigating the complexities of aligning perspectives across our numerous member firms, service lines, and functions was no small feat. Leadership’s role in driving a unified vision has been instrumental to our success.”
 

EY’s approach to AI governance adopts a long-term, strategic view that considers both regulatory and commercial imperatives. This approach not only allows EY teams to adapt to regulatory shifts but also helps it build resilience within its AI systems. While many AI systems may carry minimal regulatory risk, they still require strong governance from a commercial perspective, underscoring the value of integrating regulatory and business goals.
 

Collaboration with policymakers and regulators is another cornerstone of the strategy. Beyond adhering to the EU AI Act, EY teams actively engage in discussions with regulators and participate in international forums on AI policy. This engagement not only helps shape regulatory development but also positions the EY organization to adapt quickly and to guide clients on future compliance needs.

EY’s commitment to responsible AI, grounded in principles such as transparency, fairness and accountability, has brought significant benefits to the organization. “AI regulation will continue to evolve,” says Sofia Ihsan, EY Global Responsible AI UK&I Leader, Risk Consulting, “but our adherence to these principles remains constant.”
 

This responsible AI framework has helped EY build resilience, establish trust, and position itself as a leader in AI governance. Since 2018, the EY organization has leveraged its knowledge from highly regulated sectors to build a foundation of AI governance that brings tangible benefits through key strategies:

1. Building on model risk management practices: EY’s background in regulated industries has helped enable the creation of a solid foundation for AI governance, allowing for the integration of regulatory compliance with business considerations and enhancing organizational resilience.
   
   
2. Cross-functional collaboration: By engaging teams from technology, risk, legal, data governance and beyond, EY’s AI governance framework is comprehensive, balancing regulatory obligations with business goals. This integrated approach has fostered a more agile and responsive organization.
   
   
3. Centralized AI inventory: EY’s cataloging of AI assets, paired with a risk-rating system, helps enable quick categorization and assessment of AI systems. This proactive inventory management has enhanced compliance efficiency and strengthened risk management capabilities.
   
   
4. Commitment to responsible AI principles: Clear ethical principles aligned with EY’s broader values have increased confidence in AI systems organization-wide, supporting responsible innovation and encouraging responsible use of AI across the business.
   
   
5. Organizational alignment on regulatory insights: Leveraging experience from EY’s public policy team, complex regulations are distilled into actionable guidance. This alignment facilitates that every function understands and supports the organization’s AI governance objectives.

By embedding ethical principles, fostering cross-functional collaboration, and staying engaged with regulators, EY’s approach to AI governance has positioned the organization not only to meet regulatory demands but also to transform AI into a strategic asset. This proactive stance elevates EY’s role as a trusted advisor, benefiting both EY teams and their clients as they navigate the evolving AI landscape.