EU AI Act shapes company rules beyond Europe

New research from the Thomson Reuters Foundation finds the EU AI Act is influencing corporate governance far beyond Europe, with 47% of companies citing the law in disclosures headquartered outside the EU. The analysis, based on more than 100,000 data points from 2,973 companies worldwide, describes an emerging “Brussels Effect” in AI governance, strongest where market incentives favor alignment with EU rules.

The Act has been in force since 2024, with obligations phased in before becoming fully applicable from August 2026. Bans on the riskiest AI uses and transparency rules for general-purpose AI models were already in effect by December 2025, while high-risk systems in hiring, credit and healthcare face binding requirements from August 2026. Serious breaches can carry penalties of €35 million or 7% of global annual revenue.

Adoption remains uneven. Only 13% of companies have a formal AI governance framework, and 53% of that group reference the EU AI Act. Information technology firms account for nearly 40% of non-EU companies citing the law, while US firms make up 35% of non-EU citers. Major gaps remain in oversight: only 12.4% of companies worldwide require human review of individual AI decisions. Fewer than one in four companies assess potential harm to employee rights.