EU AI Act
EU regulation establishing risk-based AI governance framework
ISO 27701
International standard for privacy information management systems.
Quick Verdict
EU AI Act mandates risk-based AI compliance for EU market access, while ISO 27701 certifies voluntary PIMS for privacy governance. Organizations adopt AI Act to avoid fines and enable sales; ISO 27701 for global trust and procurement edge.
EU AI Act
Regulation (EU) 2024/1689 Artificial Intelligence Act
Key Features
- Risk-based tiered classification into four levels
- Prohibits unacceptable-risk AI practices outright
- Mandates conformity assessment for high-risk systems
- Regulates general-purpose AI models separately
- Phased implementation with extraterritorial reach
ISO 27701
ISO/IEC 27701:2025 Privacy Information Management
Key Features
- Role-specific controls for PII controllers and processors
- Extends ISO 27001 ISMS with privacy management system
- Annex mappings to GDPR and other privacy laws
- PDCA cycle for continual privacy risk improvement
- Three-year certification with annual surveillance audits
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
EU AI Act Details
What It Is
Regulation (EU) 2024/1689, the EU Artificial Intelligence Act, is a comprehensive horizontal regulation for AI systems. It adopts a risk-based approach, prohibiting unacceptable risks, regulating high-risk systems via lifecycle controls, imposing transparency on limited-risk AI, and minimally regulating others. Scope covers providers, deployers, and value-chain actors with extraterritorial effect.
Key Components
- Prohibited practices (Article 5), high-risk requirements (Articles 9-15: risk management, data governance, documentation, oversight, cybersecurity).
- GPAI obligations (Chapter V: documentation, systemic risk mitigations).
- Conformity assessment, CE marking, EU database registration.
- Built on product-safety principles; fines up to 7% global turnover.
Why Organizations Use It
Mandatory for EU-market AI; drives compliance, reduces liability, builds trust. Enhances risk management, enables market access, differentiates via certified safety.
Implementation Overview
Phased rollout (6-36 months); inventory/classify AI, build QMS/RMS, document, assess conformity, monitor post-market. Applies universally; high complexity for high-risk sectors like employment, biometrics.
ISO 27701 Details
What It Is
ISO/IEC 27701:2025 is an international standard for establishing, implementing, maintaining, and improving a Privacy Information Management System (PIMS). It provides requirements and guidance for managing privacy risks in processing personally identifiable information (PII), building on ISO 27001 with a risk-based, PDCA (Plan-Do-Check-Act) approach for controllers and processors.
Key Components
- Clauses 4–10 extend management system requirements for privacy scope, leadership, planning, support, operation, evaluation, and improvement.
- Annex A (controllers) and Annex B (processors) offer role-specific controls like consent, DSAR handling, retention, transfers.
- Mappings to GDPR (Annex D), ISO 27002; certification via accredited bodies over three-year cycles with surveillance audits.
Why Organizations Use It
- Demonstrates accountability for GDPR/POPIA/LGPD compliance.
- Reduces privacy risks, enhances trust, aids procurement.
- Integrates with ISMS for efficiency, provides audit-ready evidence.
Implementation Overview
- Phased: scope PII, gap analysis, controls, audits.
- Applies to all PII-processing organizations; 6-12 months typical with ISMS.
Key Differences
| Aspect | EU AI Act | ISO 27701 |
|---|---|---|
| Scope | Risk-based AI systems regulation across lifecycle | Privacy management for PII processing |
| Industry | All sectors using AI in EU | All PII-processing organizations globally |
| Nature | Mandatory EU regulation with fines | Voluntary PIMS certification standard |
| Testing | Conformity assessments, notified bodies | Internal/external audits, certification |
| Penalties | Up to 7% global turnover fines | Loss of certification, no legal fines |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about EU AI Act and ISO 27701
EU AI Act FAQ
ISO 27701 FAQ
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