Effective enforcement key to success of AI regulations

Effective enforcement mechanisms will be essential to the credibility and success of AI regulatory frameworks, according to Omdia.

“Mechanisms for addressing non-compliance should be a critical element of any AI regulatory framework,” said Sarah McBride, Principal Analyst, Regulation, at Omdia. “Financial penalties are the most common enforcement measure, but some countries have also introduced sanctions including the suspension of services and in certain cases, imprisonment.”.

Under the EU AI Act, organizations can face fines of up to €35 million ($41 million) or 7% of their global annual turnover. South Korea’s AI Basic Act allows fines of up to KRW30 million (approximately $20,000) for non-compliance.

Seven challenges shaping AI regulation
Omdia has identified seven key AI regulation challenges that regulatory frameworks must address (Figure 1):

• Safety
• Privacy, Data Management and Copyright
• Controllability
• Ethics
• Transparency and Accountability
• Security
• Collaboration and Interoperability

Omdia also assessed AI policy and regulation initiatives introduced around the world. Many countries have launched national AI strategies with the common ambition of achieving a leading position in the global AI economy.

“These strategies typically emphasize support for AI research and innovation, building AI skills and workforce capacity, accelerating adoption across public and private sectors, and strengthening data ecosystems and ICT infrastructure,” added McBride. “AI sovereignty is also becoming an increasingly important priority for governments because of national security and economic considerations.”

Some regulators enter the implementation phase
Despite the growing number of national AI strategies, relatively few regulators have introduced dedicated AI regulations; the EU AI Act entered into force in August 2024, with its requirements being introduced in stages. South Korea’s AI Basic Act came into force in January 2026, with the regulator providing a grace period of at least one year before penalties for non-compliance are imposed.

“The main impact of these regulations on telecommunications companies will be additional compliance requirements and higher operational costs. Following the design and adoption of these AI laws, regulators must now focus on implementation through practical operational compliance measures, effective enforcement, and clear guidance for industry,” concluded McBride. Omdia