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<figure id="figure-1yfuwkk95jmgs5849x"><img id="1yfuwkk95jmgs5849x" src="https://cdn.durable.co/covers/f8A2T3l9sfOjHQqidAJF5MGVCLCHcgN36Mr3WH3oDdBjtyRlOo3ZDmFgnc8VnqjO.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/f8A2T3l9sfOjHQqidAJF5MGVCLCHcgN36Mr3WH3oDdBjtyRlOo3ZDmFgnc8VnqjO.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure> The UK has one of the clearest cases in the world for health innovation. Frontier Economics has quantified the ambition: up to £278 billion in gains through productivity, NHS efficiency, and foreign direct investment. Ministers back the vision. The business case is airtight. And yet, despite all the evidence and support, little has materialised. The real tragedy isn’t just economic. It’s human. Innovations like digital cardiovascular tools, early cancer diagnostics, and AI-driven imaging are not luxuries they are lifelines. Every year of delay means thousands of patients go without treatments that could return them to work, prolong their lives, or ease the burden on families and caregivers. The cost of inaction is not only GDP lost but lives diminished. Why Haven’t We Delivered?<ul style=""><li>Fragmented decision-making. Innovation adoption is scattered across NHS trusts, regulators, and local health systems. Everyone has a say, but no one has final accountability. </li><li>Short-termism. Treasury accounting rewards savings on a one-year horizon. Spending £1 today for £5 in three years is politically unattractive. </li><li>Procurement culture. NHS procurement is designed to minimise risk, not to maximise value. SMEs with novel solutions face prohibitive hurdles. </li><li>Political distraction. Ministers know the rhetoric but are consumed by waiting lists, strikes, and winter crises. Innovation, lacking a “photo-op,” slips down the agenda. </li><li>Investor conservatism. And this, perhaps, is the most corrosive. &nbsp; Sidebar: Why Capital Flows West UK and European investors are chronically cautious. Pension funds in the UK and Ireland allocate just 0.007 % of assets to venture capital versus 15 % in North America. Across Europe, the figure is only 0.024 %. In the U.S., pension funds supply around 70 % of VC capital, compared to 10 % in the UK. The result? Growth-stage health tech ventures born in Britain but starved of domestic funding head to Nasdaq or U.S. private equity to scale. For patients, this means innovations are often commercialised and deployed in American hospitals before they are available in the NHS. The UK funds the science; U.S. patients reap the benefits. &nbsp; The Consequences We’ve already seen what happens when investment falters. AstraZeneca cancelled a £450 million UK vaccine facility after delayed government backing, pivoting to U.S. and Chinese sites instead. There is even talk of a U.S. stock-market listing a devastating blow to London’s financial reputation. Meanwhile, British biotech IPOs on the LSE have all but dried up, even as Nasdaq welcomes UK-born firms. </li></ul>This isn’t just about losing companies. It’s about losing time for patients. When the capital and confidence flow overseas, the deployment of life-saving technologies stalls at home. Patients wait longer. NHS staff operate with outdated tools. And the UK forfeits both the health and the economic dividend. What Must Change<ul><li>Shift Treasury rules. Count multi-year innovation savings as current-year value. Investment should be judged by long-term ROI, not the next fiscal cycle.</li><li>Redesign procurement. Focus on outcomes and value, not just lowest cost. SMEs should have a path to compete.</li><li>Build domestic risk capital. Mobilise UK pension funds and institutional investors to allocate meaningfully to VC, with government de-risking mechanisms if necessary. </li><li>Anchor flagship firms. Support AstraZeneca and others to keep their R&amp;D and listings in Britain. </li><li>Brand health innovation as an investment story. Market the £32 billion FDI opportunity to global investors, but with proof of domestic adoption to back it up. </li></ul>The Bottom Line The UK has the data, the endorsements, and the talent. What it lacks is delivery. Until we confront the culture of risk aversion in government, in procurement, and in capital markets the £278 billion prize will remain just that: a promise. And patients, the very people this innovation is meant to serve, will continue to pay the highest price. &nbsp; &nbsp;References&nbsp; Health Innovation Network. (2025). The Prize That Slipped Away: Rethinking the Worth of Health Innovation. In Defining the size of the health innovation prize (pp. 4–8). Frontier Economics. The Health Innovation Network. https://cdn.thehealthinnovationnetwork.co.uk/wp-content/uploads/2025/06/Defining-the-Size-of-the-Health-Innovation-Prize-report.pdf

The Prize That Slipped Away: Rethinking The Worth of Health Innovation

<h2>Pragmatism is back in fashion&nbsp; &nbsp;</h2><figure id="figure-jsy4yshvnrmgfe912q"><img id="jsy4yshvnrmgfe912q" src="https://cdn.durable.co/blocks/2csHkzGEEGj6MOhYJthe7H3src0WxlETuLaGHmMRAZDLQJ05DMZ0s9pb4956skuN.jpg" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 1/1; object-position: center center;" data-corners="default" data-aspect="1:1" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/2csHkzGEEGj6MOhYJthe7H3src0WxlETuLaGHmMRAZDLQJ05DMZ0s9pb4956skuN.jpg" data-mce-style="aspect-ratio: 1/1; object-position: center center;"></figure>&nbsp; This year’s Conservative Party Conference carried a notably different mood less noise, more reflection. Beneath the surface speeches and security lines, you could sense a party attempting to rebuild trust with its traditional allies: small businesses, women leaders, and the wider economy that drives them. &nbsp; <h2> </h2><h2>Women, ambition, and the honesty gap &nbsp; </h2>In the Women in Business Empowerment session, Shadow Minister for Women and Shadow Secretary of State for Wales Mims Davies didn’t shy away from the real trade-offs women face from single parenting and career progression to the unspoken cost of networking and wellbeing. The message was refreshingly grounded: gender equality isn’t about token rooms; it’s about creating mixed rooms that matter. She called for the Conservative Party to rediscover its voice on entrepreneurship, aspiration, and social mobility and to speak honestly about the energy and financial pressures that hold women and families back. &nbsp; <h2> </h2><h2>The economy: from corporatism to competitiveness &nbsp; </h2>In the HR and Economic Policy discussion with the Shadow Chancellor of the Exchequer Mel Stride, the theme was strikingly consistent, small and medium businesses have been forgotten. Speakers from the floor called for less corporatism, less red tape, and more direct support for entrepreneurs navigating compliance, regulation, and taxation. The tone was frank: the UK must rediscover its appetite for risk and reward. The Shadow Chancellor was clear that there is no silver bullet, and we are in a whirlwind of challenges which need to be navigated with a steady hand. Are we ready to pivot - I ask? We are not there yet. &nbsp; &nbsp; <h2> </h2><h2>Defence and direction &nbsp; </h2>With the Shadow Secretary of State for Defence James Cartlidge, conversation turned to security and spending but the undertone was strategic: how can Britain remain globally credible while investing in innovation and industrial resilience? Many in the room argued that our greatest strength lies in supporting the industries that underpin national capability from advanced manufacturing to emerging defence tech. &nbsp; <h2> </h2><h2>Energy and the politics of realism &nbsp; </h2>By the time the Shadow Secretary of State for Energy Security and Net Zero and Minister for Equalities Claire Coutinho took the stage in the Energy Strategy session, the day’s themes had converged: practicality, affordability, and growth. Her approach to Net Zero was notably pragmatic less ideology, more implementation. She stressed that decarbonisation should not come at the expense of competitiveness or consumer choice. Electricity costs, over-regulation, and misplaced subsidies were highlighted as barriers not just to innovation, but to public trust. When asked about EV infrastructure and investor confidence, the response was telling government should focus on enabling infrastructure not mandating behaviour. &nbsp; <h2> </h2><h2>A lunch with Lord Sharpe: candour over ceremony &nbsp; </h2>Over lunch, the Shadow Minister for Business and Trade Lord Sharpe spoke with unfiltered honesty about bureaucracy, regulation, and political inertia.&nbsp; &nbsp; The most quoted moment of the day came from the leader’s speech later on: &nbsp; "Any self-respecting sovereign nation should be able to answer these five questions with a clear yes: · &nbsp;Can we deport foreign criminals? · &nbsp;Can we protect our veterans? · &nbsp;Can we put British citizens first for housing and public services? · &nbsp;Can we stop protests from intimidating the public? · &nbsp;Can we end the red tape choking growth?” &nbsp; <h2> </h2><h2>Takeaway: pragmatism is back in fashion &nbsp; </h2>The mood across sessions was sober but not defeated. What emerged was a cross-sector recognition that business, government, and policy need to work with each other not in isolation. &nbsp; For Larkspur, that’s precisely where we operate: between purpose and practicality. <ul><li>Connecting ambition to policy.</li><li>Translating political moments into business strategy.</li><li>And turning conference conversations into measurable outcomes. &nbsp; If this conference was about anything, it was about remembering that growth doesn’t come from headlines, it comes from people willing to do the work. </li></ul>

Pragmatism is back in fashion- Conservative Party Conference 2025

<h2>Like the old track says, “Music is the answer to your problems.”</h2><h2>Except this time, the refrain was different: “Patriotism is the answer.”</h2> It set the tone for the government’s conference. Not loud, not defiant but quietly confident. The mood across the rooms was one of stability, hope, and realism. People smiled more than they argued. The atmosphere was warm but serious: the sense that, perhaps, we’ve all had enough of crisis talk and just want to get on with it.And that word delivery echoed through almost every session. <h2>Grounded Promises, Not Just Slogans</h2>What was refreshing was how clear the government tried to be on what “delivery” actually means. There was no shortage of ambition but this year, ambition came in practical form.&nbsp; &nbsp; • &nbsp; &nbsp;On Immigration and Borders: Stronger deportation powers for foreign offenders. A promise to fix the legal tangle around asylum backlogs. A push to reassert control over borders and to challenge the ECHR constraints that have slowed the process for years.It wasn’t about slogans: it was about mechanics, systems, and timelines. That felt new.&nbsp; &nbsp; • &nbsp; &nbsp;On Veterans and Public Services: Commitments to protect veterans from endless legal harassment. A pledge to prioritise British citizens for housing and social services. And a reminder that the NHS despite the pressures remains a national priority, with new funding pathways expected to unlock before the spring.&nbsp; &nbsp; • &nbsp; &nbsp;On the Economy and Growth: Ministers repeated that growth can’t come from slogans, only structure:<ul><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul style="list-style-type: circle;" data-mce-style="list-style-type: circle;"><li>fewer layers of regulation, simpler tax reliefs for small businesses, and genuine devolution so local governments can act fast.</li><li>The “patriotism” they talked about wasn’t performative, it was about rebuilding national capacity to deliver.</li></ul></li></ul></li></ul></li></ul><h2>The Tone: Warm, Focused, and a Little Wiser</h2>If you’ve attended enough conferences, you know when a room feels tense and when it feels purposeful. This year, the difference was palpable. The conversations weren’t about blame, they were about fixing. You could sense that people, ministers, members, delegates had stopped waiting for someone else to act.Even the way issues like the NHS and immigration were discussed felt more mature. No denial, no grandstanding. Just a shared understanding that people are tired of hearing “plans” that never materialise.One delegate said quietly during coffee, “Patriotism’s fine, but people want proof.”That summed up the whole mood.<h2>Delivery Is the New Devotion</h2>Keir Starmer’s tone was disciplined, pragmatic, sometimes even cautious. But the government’s answer now is to meet that same terrain head-on, with conviction rather than contrast.They know that speeches will no longer win votes, delivery will.From faster planning decisions and small business incentives to housing reform and local energy investment, the emphasis has shifted from policy to proof.And that’s where the next test lies, not in whether people agree, but whether they can see and feel results before they’re asked to vote again.<h2>A Note on Mood</h2>If you stepped back and looked at the bigger picture, you could say this: the conference didn’t feel defensive. It felt determined. Delegates spoke with clarity. Ministers smiled but didn’t overpromise. And beneath the soundbites, there was one quiet, shared thought: that the UK needs less chaos and more competence.Patriotism might be the slogan, but the subtext was clear:Delivery is devotion. And that’s where trust will be rebuilt.

“Patriotism Is the Answer”- But Delivery Will Tell- Labour Party Conference 2025

electric car charging with modern EV charger. EV charger is mounted on the wall

This report provides a comprehensive overview of the most recent and impactful electric vehicle (EV) and energy subsidy programmes in the United Kingdom and across Europe. It highlights recent policy changes, strategic funding opportunities, and the implications for buyers, fleets, and infrastructure developers.<figure id="figure-24luf45fg1mfzboj1p"><img id="24luf45fg1mfzboj1p" src="https://cdn.durable.co/blocks/2dI7DiuGYw587YDDvWbpvnqj0AhBkIxw6zH436peu1quIFbprlZdQ3OP5H70WdlS.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/2dI7DiuGYw587YDDvWbpvnqj0AhBkIxw6zH436peu1quIFbprlZdQ3OP5H70WdlS.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>Key findings include:</h2><ul><li>The UK has reintroduced a national EV grant programme in July 2025, worth £650m, offering up to £3,750 for qualifying vehicles.</li><li>EU-level climate and infrastructure packages continue to underpin national subsidies and charging deployment.</li><li>Major markets such as Germany, France, and Spain have seen important shifts in subsidy availability, with Germany moving toward tax incentives, France restructuring its ecological bonus, and Spain continuing the MOVES scheme.</li><li>Subsidy availability is often budget-limited and region-specific, requiring close monitoring for timely applications.&nbsp;</li></ul><h2>United Kingdom: EV Subsidy Landscape</h2> 1. Reintroduced EV Purchase Grant (July 2025):<ul><li>A £650 million scheme offers up to £3,750 off new battery-electric vehicles (BEVs) priced below ~£37,000.</li><li>This represents a significant policy reversal, reinstating direct purchase incentives after their 2022 removal.</li></ul> 2. Charging Infrastructure Grants:<ul><li>Home and renter/flat-owner ChargePoint grants continue.</li><li>The Depot Charging Scheme provides up to 75% of costs for commercial fleet charging infrastructure.</li><li>On-street residential schemes remain active via local authorities.</li></ul> 3. Tax Incentives and Salary Sacrifice:<ul><li>Company car tax (benefit-in-kind) rates remain very favourable for EVs.</li><li>Salary sacrifice schemes increase affordability through payroll tax efficiencies.</li></ul><h2>European Union: Policy and Funding Frameworks </h2>At the EU level, several overarching frameworks shape national subsidy regimes:<ul><li>Fit for 55: Establishes emissions reduction pathways, including road transport.</li><li>Alternative Fuels Infrastructure Regulation (AFIR): Mandates charging station density across TEN-T corridors.</li><li>EU Funds: Connecting Europe Facility (CEF), Recovery and Resilience Facility, and cohesion funds finance charging and energy infrastructure projects. </li></ul><h2>Key National Programmes in Europe </h2>Germany<ul><li>The Umwelt bonus purchase subsidy has been phased out as of late 2023.</li><li>Support now centres on tax relief, including reduced company car tax and accelerated depreciation.</li><li>Proposals for new targeted incentives are under discussion but constrained by fiscal limits.</li></ul> France<ul><li>The “bonus écologique” was restructured in July 2025, shifting support toward energy efficiency and conversion schemes.</li><li>The “prime à la conversion” remains available, supporting trade-in of older vehicles for low-emission models.</li><li>Infrastructure funding continues alongside national green industrial policies.</li></ul> Spain<ul><li>The MOVES III programme continues into 2025 with a €400 million budget.</li><li>Subsidies support both EV purchases and charging infrastructure installation.</li><li>Availability depends on regional budgets, with some autonomous communities already exhausting allocations.</li></ul> <h2>Strategic Implications </h2>For Buyers:<ul><li>Substantial savings remain possible, especially in the UK, Spain, and select EU countries.</li><li>Monitoring scheme eligibility and budget windows is critical.</li></ul> For Fleets and Infrastructure Developers:<ul><li>Depot and workplace charging grants provide significant cost offsets.</li><li>EU and national funding streams can support large-scale deployment projects.</li></ul> For Investors:<ul><li>Policy volatility (e.g., Germany’s subsidy withdrawal, France’s restructuring) underscores the need for adaptive strategies.</li><li>Long-term tax incentives remain more stable than purchase grants. </li></ul>

EV and Energy Subsidy Landscape 2025

London, 20 September 2025: The latest Defence and Security Equipment International (DSEI) at ExCeL London was more than a showcase of defence tech, it was a stage where strategy, risk, and opportunity danced a delicate tango. With over 35,000 professionals from 75 nations gathering, the exhibition brimmed with promise: AI-sensors, modular unmanned platforms, resilient cybersecurity. But amid the gleam of innovation, the UK government held back on major procurement announcements. At Larkspur International, we know that behind this pause are powerful signals for those who want to lead, not follow- working alongside the government supporting their priorities.<h2>Innovation Meets Restraint: Reading Between the Lines</h2>Every stand at DSEI spoke to the future: hybrid warfare, secure logistics, new cyber defences. Yet the rhetoric from government was more “strategy,” “vision,” and “potential” than “contracts,” “deliverables,” or “schedules.” That doesn’t mean a lack of intent, it reflects the complexity of our times: constrained budgets, geopolitical flux, and substantial strategic risk. For industry players, this means the advantage will go to those who can anticipate change, adapt quickly, and align with government priorities before they become formalised.At Larkspur, our edge is exactly that: combining policy-expertise, regulatory insight, and business strategy so that clients don’t just respond but shape the agenda working closely with international governments.<h2>Structural Reform: Laying the Groundwork for Tomorrow</h2>The Ministry of Defence (MoD) is clearly in transformation mode: new leaders at the top levels (CDS, First Sea Lord, Chief of the Air Staff), the establishment of the Military Support Headquarters (MSHQ), and an effort to strengthen decision pathways. These are not cosmetic changes, they are structural moves designed to clarify roles, reduce friction, and deliver when timing and execution matter.One gap remains: the National Armaments Director (NAD), a role crucial to turning strategy into procurement, remains unfilled. Without this juncture, big-ticket announcements are harder to commit to. It suggests that businesses wanting to engage with government will need to work earlier, with greater visibility, and with an eye on how policy is translating into capability.<h2>Leadership Clarity: Driving the Agenda Forward</h2>Amidst the ambiguity, two speeches provided notable clarity. The 1SL’s address was direct, setting firm milestones for the Royal Navy and Royal Marines to become a war-fighting force: enhanced lethality by 2027 and full-spectrum readiness by 2030. This is a clear directive for industry to align with precise timelines; a challenge Larkspur supports through our ability to expedite opportunities and reduce regulatory barriers.The CAS’s focus on the F-35A’s integration into a tactical nuclear posture marked a significant shift for the Royal Air Force and UK deterrence strategy. This evolution demands robust, interoperable C4ISR networks, aligning with Larkspur’s mission to deliver secure communication solutions that enable operational success in complex environments.<h2>Spotlight on Innovation: Concepts Shaping the Future</h2>Several innovations captured attention, blending ambition with practical questions:<ul><li><a data-mce-href="https://www.lockheedmartin.com/en-us/products/tf-50.html" href="https://www.lockheedmartin.com/en-us/products/tf-50.html" target="_blank" rel="noopener">Lockheed Martin’s TF-50</a>: Presented in the RAF’s Red Arrows livery, this proposed Hawk T2 replacement integrates advanced training technologies, leveraging international collaboration to prepare pilots for the F-35 era.</li><li><a data-mce-href="https://aeralis.com/aerflex/" href="https://aeralis.com/aerflex/" target="_blank" rel="noopener">Aeralis’ Aerflex</a>: UK-based Aeralis stood out with its modular, sovereign training platform, Aerflex. Designed to adapt from basic flight training to advanced tactical roles, it offers a cost-effective, UK-built solution that reduces reliance on foreign supply chains. Aeralis aims to disrupt the training market by delivering flexibility and affordability, aligning with the UK’s need for resilient, scalable capabilities. Their approach resonates with Larkspur’s focus on fostering business-to-government growth through strategic engagement and market intelligence.</li><li><a data-mce-href="https://armyrecognition.com/news/army-news/2025/dsei-2025-new-ajax-ifv-set-to-strengthen-british-mechanized-infantry-carrying-eight-dismounts-and-uncrewed-40-mm-turret" href="https://armyrecognition.com/news/army-news/2025/dsei-2025-new-ajax-ifv-set-to-strengthen-british-mechanized-infantry-carrying-eight-dismounts-and-uncrewed-40-mm-turret" target="_blank" rel="noopener">AJAX IFV (Stretched Ares)</a>: This modular platform, optimised for urban combat, impressed with its sensor integration but sparked questions about funding feasibility, given past programme challenges and the Warrior programme’s suspension.</li><li><a data-mce-href="https://www.bmt.org/projects/project/3512/ellida174" href="https://www.bmt.org/projects/project/3512/ellida174" target="_blank" rel="noopener">BMT’s Ellida Multi-Role Support Ship</a> concept also gained traction, supporting the Royal Navy’s shift to distributed operations with versatile amphibious capabilities.</li></ul><figure id="figure-ir0znsnwahmfuyfdog"data-full-width><img id="ir0znsnwahmfuyfdog" src="https://cdn.durable.co/blocks/23ntDiAKhlAsOoBj2iI7fTnJwljzaOmRj2MDYrlivCyWwfvy2hnRV2FZMSBBxWue.jpg" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="true"/></figure><h2>The Path Ahead: Budget Clarity and NATO Opportunities</h2>DSEI 2025 was a compelling showcase of reform and innovation, tempered by procurement caution. The Autumn Budget and year-end defence settlement will be pivotal in determining whether funding matches ambition, a critical moment for industry to influence outcomes.For businesses, the call to action is clear: engage proactively, not only with UK policymakers but across NATO. Interoperability through secure, scalable systems is paramount, balanced with sovereign resilience. At Larkspur International, we empower clients to navigate these complexities, combining policy expertise with commercial execution to remove barriers, reduce risks, and drive growth. Our work in the intersection of business and government ensures clients are placed to seize opportunities in this evolving landscape.<h2>Opportunity for Those Who Lead, Not Follow</h2>At this inflection point, the winners will be those who do more than wait. Those who:<ul><li>Understand the levers of government- procurement, regulation, legislation and create value before others realise opportunity exists.</li><li>Build visibility and credibility steadily, ensuring that when decisions are made, their expertise and solutions are already recognised.</li><li>Plan for multiple scenarios- because agility won’t just be an advantage; it’ll be essential.</li></ul>Larkspur International exists to operate where Government meets Business Growth. Where others advise, we Act.&nbsp; What did you take away from DSEI? Let’s connect to explore how we can shape the future together.Lee Hannaford is Director of Defence, Security, and Intelligence at Larkspur International. Follow us on LinkedIn for insights on bridging government and business for growth. #DSEI2025 #UKDefence #NATO #Innovation

DSEI 2025: Where Ambition, Innovation and Real Constraints Meet in UK Defence

As of September 2025, the EU Artificial Intelligence Act is no longer a distant regulation: it is binding law, with major obligations already in effect and others rapidly approaching. The Act introduces the world’s first comprehensive, risk-based framework for AI, aimed at protecting safety, fundamental rights, and trust while setting a global precedent for governance.<figure id="figure-p7cydpa3momfmdruyu"><img id="p7cydpa3momfmdruyu" src="https://cdn.durable.co/blocks/azhrx70EGxYr5s6vJhCVdEo4Kie4maE1bFDNueDVfn375FL3TBFpM35CbIqEcDgy.jpg" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>Several milestones have already reshaped the compliance landscape. Since February 2025, organisations have been prohibited from using so-called “unacceptable” AI practices, such as social scoring, manipulative systems, or biometric categorisation of sensitive traits. At the same time, companies became responsible for ensuring their staff have a basic level of AI literacy to handle these technologies responsibly. From August 2025, obligations for providers of general-purpose AI models took effect. These include strict requirements for transparency, documentation, oversight, and user guidance. Crucially, non-compliance can now trigger penalties of up to €35 million or seven percent of global annual turnover, placing AI compliance on par with GDPR in terms of risk exposure.Looking ahead, August 2026 will mark the entry into force of the full regime for high-risk AI systems. These include applications in credit scoring, employment, border control, healthcare, and other sensitive domains. Providers and deployers in these areas will need to implement comprehensive risk-management systems, rigorous data governance, human oversight mechanisms, and ongoing monitoring. By August 2027, the transition period for older, pre-existing high-risk systems will expire, making compliance unavoidable across the board.The risks for organisations go beyond fines. Misclassifying systems, failing to maintain adequate documentation, or underestimating the resources needed for compliance can result in both legal and reputational harm. Companies also face pressure from high compliance costs, skills shortages, and lingering uncertainties around enforcement practices as national authorities scale up their capabilities.To mitigate these risks, organisations should act now. Mapping all AI systems and assessing whether they fall under general-purpose or high-risk categories is the first step. Strengthening documentation and data provenance practices, investing in staff training, and embedding human oversight into critical decision-making processes are equally important. Proactively engaging with regulators and considering voluntary adoption of the GPAI Code of Practice can also provide strategic advantages.In conclusion, the EU AI Act is not simply a compliance challenge: it is a framework for trustworthy AI. Early movers that align with its requirements will not only reduce exposure to regulatory and reputational risks but also gain a competitive edge in building safe, transparent, and reliable AI systems that the market can trust.

INSIGHTS

The Prize That Slipped Away: Rethinking The Worth of Heal...

Pragmatism is back in fashion- Conservative Party Confere...

“Patriotism Is the Answer”- But Delivery Will Tell- Labou...

EV and Energy Subsidy Landscape 2025

DSEI 2025: Where Ambition, Innovation and Real Constraint...

EU AI Act 2025 Risk Report