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Compliance Costs
Compliance costs refer to the money, staff time, and operational effort that organizations spend to meet legal and regulatory obligations, such as those created by the EU AI Act and similar rules. For AI governance, this covers items like risk assessments, documentation, audits, vendor due diligence, and ongoing monitoring of systems. Tracking these costs helps general counsel and risk managers budget realistically, decide where to automate, and make the case for governance investment to leadership.
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