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EU AI Act and International Arbitration: Territorial Reach, Risk Categories and Compliance for Arbitrators and Tribunals

Published on: 25 September 2025

Published by a LexisNexis Arbitration expert
Legal News
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Article summary

The EU has rolled out a red carpet for AI in arbitration, but only those dressed for compliance get to walk it.

Regulation 2024/1689 (the EU AI Act) took effect on 1 August 2024, setting companies on a path of steadily increasing obligations through to August 2026. Its purpose is to govern how AI is built and deployed so that systems are safe, transparent, traceable, non-discriminatory and environmentally sustainable. The regime is risk-led, slotting AI into risk-based categories (unacceptable, high-risk, limited-risk and minimal-risk), with legal obligations rising in line with the assessed risk. Core requirements include transparency, human oversight, cyber security and quality management, with the heaviest burden on high-risk AI. Its breadth and level of abstraction echo the EU General Data Protection Regulation. While the newest wave of AI—generative AI (Gen AI)—has only recently blossomed, the rules capture every AI system, with ‘AI system’ spanning simple algorithms through to sophisticated Gen AI systems. All sectors and users are affected, including law practitioners...

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