EU AI Act
EU regulation for risk-based AI system governance
FedRAMP
U.S. government program standardizing cloud security authorization
Quick Verdict
EU AI Act regulates high-risk AI systems EU-wide with conformity assessments and fines up to 7% turnover, ensuring safety. FedRAMP authorizes secure cloud for US federal use via 3PAO assessments. Companies adopt AI Act for EU market access, FedRAMP for government contracts.
EU AI Act
Regulation (EU) 2024/1689 Artificial Intelligence Act
Key Features
- Risk-based four-tier AI classification framework
- Outright bans on unacceptable-risk practices
- Conformity assessment and CE marking required
- Lifecycle risk management for high-risk systems
- Systemic risk rules for general-purpose AI
FedRAMP
Federal Risk and Authorization Management Program
Key Features
- NIST SP 800-53 Rev 5 control baselines with overlays
- Three FIPS 199 impact levels (Low, Moderate, High)
- Independent 3PAO security assessments required
- Continuous monitoring with monthly deliverables
- Assess once, use many times reusability
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
EU AI Act Details
What It Is
EU AI Act (Regulation (EU) 2024/1689) is a comprehensive, horizontal EU regulation for AI systems. It adopts a risk-based approach, prohibiting unacceptable risks, imposing strict controls on high-risk AI, transparency for limited-risk, and minimal rules for others. Scope covers providers, deployers across value chain, with extraterritorial reach.
Key Components
- Four risk tiers: unacceptable (banned), high-risk (Annex I/III), limited (transparency), minimal.
- High-risk obligations: risk management (Art. 9), data governance (Art. 10), documentation (Arts. 11-13), human oversight (Art. 14), cybersecurity (Art. 15).
- GPAI rules (Chapter V): documentation, systemic risk assessments.
- Conformity assessment, CE marking, EU database registration; hybrid enforcement via AI Office, national authorities.
Why Organizations Use It
- Mandatory compliance avoids fines up to 7% global turnover.
- Ensures EU market access for high-risk AI.
- Builds trust, mitigates safety/fundamental rights risks.
- Provides competitive edge in regulated sectors like healthcare, finance.
Implementation Overview
Phased (6-36 months): inventory/classify AI, build QMS/RMS, conduct assessments, monitor post-market. Applies to EU-impacting organizations; involves cross-functional teams, notified bodies for certification.
FedRAMP Details
What It Is
FedRAMP (Federal Risk and Authorization Management Program) is a U.S. government-wide framework standardizing security assessment, authorization, and continuous monitoring for cloud services used by federal agencies. Its primary purpose is enabling "assess once, use many times" to reduce duplication, based on a risk-based approach using NIST SP 800-53 controls and FIPS 199 impact levels.
Key Components
- Baselines at Low (~156 controls), Moderate (~323), High (~410), plus LI-SaaS for low-risk SaaS.
- Core artifacts: SSP, SAR, POA&M, continuous monitoring plans.
- Built on NIST SP 800-53 Rev 5; involves 3PAOs for independent assessments.
- Compliance model: Agency or Program authorizations, listed on FedRAMP Marketplace.
Why Organizations Use It
- Unlocks federal contracts (e.g., $20M+ opportunities).
- Required for agencies using cloud; enables CMMC compliance.
- Enhances risk management, competitive edge, stakeholder trust.
Implementation Overview
- Phased: preparation, 3PAO assessment, authorization, monitoring.
- Applies to CSPs targeting U.S. federal market; high complexity for all sizes.
- Requires audits by accredited 3PAOs; 12-18 months typical.
Key Differences
| Aspect | EU AI Act | FedRAMP |
|---|---|---|
| Scope | AI systems by risk levels across lifecycle | Cloud services security for federal agencies |
| Industry | All sectors, EU-wide, high-risk focus | Cloud providers, US federal government only |
| Nature | Mandatory EU regulation with fines | Standardized authorization program, required for contracts |
| Testing | Conformity assessments, notified bodies | 3PAO independent assessments, continuous monitoring |
| Penalties | Up to 7% global turnover fines | Loss of authorization, contract ineligibility |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about EU AI Act and FedRAMP
EU AI Act FAQ
FedRAMP FAQ
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