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Guardrails, not barriers: Navigating AI Act readiness

Author

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  • Väyrynen, Karin
  • Holmström, Jonny
  • Sundberg, Leif
  • Hietala, Heidi
  • Lanamäki, Arto

Abstract

Ongoing efforts to regulate artificial intelligence (AI), like the recently adopted European AI Act, are affecting organizations already struggling to bolster AI readiness. While many fear that such regulations will stifle AI innovation, we argue that they instead set guardrails for, rather than present barriers to, AI initiatives. Thus, organizations must urgently prepare for compliance with the AI Act and similar regulations while ensuring continued AI initiative success. In this article, we provide the AI Act Readiness Framework, a 2x2 matrix to help organizations map their current AI Act readiness, and outline four strategies toward compliant AI initiatives. The framework provides a structured approach to move from low to high AI Act readiness by better understanding the legal obligations and required compliance. We also outline five managerial recommendations that organizations could employ for increased AI Act readiness. Via these efforts, this article contributes to AI preparation in business with a framework to assess organizational readiness regarding AI regulation and envisions a future in which AI is developed responsibly.

Suggested Citation

  • Väyrynen, Karin & Holmström, Jonny & Sundberg, Leif & Hietala, Heidi & Lanamäki, Arto, 2026. "Guardrails, not barriers: Navigating AI Act readiness," Business Horizons, Elsevier, vol. 69(4), pages 541-556.
    • Handle: RePEc:eee:bushor:v:69:y:2026:i:4:p:541-556
    DOI: 10.1016/j.bushor.2025.08.002
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