“As more AI models are developed and more organizations are involved, it’s crucial they include legal safeguards in their operations,” Jain said. “This shifts legal liability to the model provider. While this may slow down innovation, it ensures that companies are also responsible for legal compliance, potentially restricting smaller players from entering the market.”

Enterprises will be forced to conduct regular audits of AI models to ensure compliance with data protection laws, said Thomas George, President of Cybermedia Research.

“Financially, enterprises should consider setting aside reserves to cover potential compliance-related costs, mitigating the impact of any necessary sudden modifications to AI models,” George said. “Operationally, investing in ongoing training and development for technical teams to stay abreast of the latest compliance requirements will enable more agile adjustments to AI systems when needed.”