The European Union's AI Act is increasingly influencing how companies around the world govern artificial intelligence—even among businesses that are not legally required to comply with the law. According to new research cited by Euronews, 47% of companies referencing the AI Act in their AI governance disclosures are headquartered outside the EU, demonstrating the growing "Brussels Effect," where EU regulations become de facto global standards because of the size and importance of the European market.
The AI Act, which becomes fully applicable for many high-risk AI obligations in August 2026, applies not only to European companies but also to organizations whose AI systems are used within the EU or affect EU citizens. As a result, businesses in the United States, United Kingdom, Switzerland, Norway, Japan, and other countries are voluntarily aligning their AI governance practices with the legislation to maintain access to the European market and prepare for future regulatory requirements.
The research found that the strongest adoption is occurring in the technology, communications, and financial services sectors, with North American firms accounting for the largest share of non-EU companies referencing the Act. Many major AI developers, including Microsoft, Google, OpenAI, and xAI, have adopted elements of the EU's voluntary AI Code of Practice, while companies are strengthening governance through board-level oversight, transparency policies, risk management frameworks, and documentation of AI systems. However, significant gaps remain: only 13% of companies worldwide have a formal AI governance framework, and just 12.4% require human review of individual AI decisions. Human rights impact assessments are even less common, despite becoming mandatory for certain high-risk AI applications under the Act.
The article concludes that the EU AI Act is rapidly becoming a global benchmark for responsible AI governance, much like the General Data Protection Regulation (GDPR) did for data privacy. Rather than waiting for local regulations, companies worldwide are proactively adopting AI governance practices centered on transparency, accountability, and human oversight. As AI becomes integral to business operations, the ability to comply with internationally recognized standards is increasingly viewed as a competitive advantage, enabling organizations to build trust, reduce regulatory risk, and operate across global markets.
