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What the AI Act is and why it was introduced

The AI Act is the first EU-wide law that sets rules for the development and use of artificial intelligence. The rationale behind this legislation is clear: only with clear rules can AI be safe, transparent, and ethical for both companies and their customers.

Artificial intelligence is increasingly penetrating all areas of life and business, so the EU aims to ensure that its use and development are responsible and free from misuse, discrimination, or other negative impacts. The AI Act is designed to protect consumers, promote fair competition, and establish uniform rules across all EU member states.

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Who the AI act applies to

The devil is often in the details, and the AI Act is no exception. This legislation affects not only companies that develop AI but also those that use it in their products, services, or internal processes. Typically, companies that must comply with the AI Act include those that:

• Develope AI
  
  
• Use AI for decision-making about people, such as recruitment or employee performance evaluation
  
  
• Automate customer services, for example, chatbots or voice assistants
  
  
• Process sensitive data using AI
  
  
• Integrate AI into products and services
  
  
• Operate third-party AI systems, such as implementing pre-built AI solutions from external providers
  
  

The AI Act distinguishes between standard software and AI systems, so it is always important to determine whether a solution operates autonomously and adaptively, meaning it learns from data and optimizes its results, or merely executes predefined instructions, which does not meet the definition of an AI solution.

Importantly, the legislation applies not only to new AI applications but also to existing ones, including machine learning systems.

To save you from spending dozens of hours worrying whether your company fully complies, BigHub is ready to handle AI Act implementation for you.

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What the AI Act regulates

The AI Act defines many detailed requirements, but for businesses using AI, the key areas to understand include:

1. Risk classification

The legislation categorizes AI systems by risk level, from minimal risk to high risk, and even banned applications.

2. Obligations for developers and operators

This includes compliance with safety standards, regular documentation, and ensuring strict oversight.

3. Transparency and explainability

Users of AI tools must be aware they are interacting with artificial intelligence.

4. Prohibited AI applications

For example, systems that manipulate human behavior or intentionally discriminate against specific groups.

5. Monitoring and incident reporting

Companies must report adverse events or malfunctions of AI systems.

6. Processing sensitive data

The AI Act regulates the use of personal, biometric, or health data of anyone interacting with AI tools.

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Avoid massive fines

Penalties for non-compliance with the AI Act are high, potentially reaching up to 7% of a company’s global revenue, which can amount to millions of euros for some businesses. 

This makes it crucial to implement the new AI regulations promptly in all areas where AI is used.

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Let us handle AI Act compliance for you

Don’t have dozens of hours to study complex laws and don’t want to risk huge fines? Why not let BigHub manage AI Act compliance for your company?

We help clients worldwide implement best practices and frameworks, accelerate innovation, and optimize processes, and we are ready to do the same for you.

We offer turnkey AI solutions, including integrating AI Act compliance. Our process includes:

• Creating internal AI usage policies for your company
  
  
• Auditing the AI applications you currently use
  
  
• Ensuring existing and newly implemented AI applications comply with the AI Act
  
  
• Assessing risks so you know which AI systems you can safely use
  
  
• Mapping your current situation and helping with necessary documentation and process obligations

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What Is MCP – and Why Should You Care?

Model Context Protocol may sound like something out of an academic paper or internal Big Tech documentation. But in reality, it’s a standard that enables different AI systems to seamlessly communicate—not just with each other, but also with APIs, business tools, and humans.

Today’s AI tools—whether chatbots, voice assistants, or automation bots—are typically limited to narrow tasks and single systems. MCP changes that. It allows intelligent systems to:

• Check your e-commerce order status
• Review your insurance contract
• Reschedule your doctor’s appointment
• Arrange delivery and payment

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All without switching apps or platforms. And more importantly: without every company needing to build its own AI assistant. All it takes is making services and processes “MCP-accessible.”

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From AI as a Tool to AI as an Interface

Until now, AI in business has mostly served as a support tool for employees—helping with search, data analysis, or faster decision-making. But MCP unlocks a new paradigm:

Instead of building AI tools for internal use, companies will expose their services to be used by external AI systems—especially those owned by customers themselves.

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That means the customer is no longer forced to use the company’s interface. They can interact with your services through their own AI assistant, tailored to their preferences and context. It’s a fundamental shift. Just as the web changed how we accessed information, and mobile apps changed how we shop or travel, MCP and intelligent interfaces will redefine how people interact with companies.

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The AI-First Era Is Already Here

It wasn’t long ago that people began every query with Google. Today, more and more users turn first to ChatGPT, Perplexity, or their own digital assistant. That shift is real: AI is becoming the entry point to the digital world.

“Web-first” and “mobile-first” are no longer enough. We’re entering an AI-first era—where intelligent interfaces will be the first layer that handles requests, questions, and decisions. Companies must be ready for that.

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What This Means for Companies

1. No More Need to Build Your Own Chatbot

Companies spend significant resources building custom chatbots, voice systems, and interfaces. These tools are expensive to maintain and hard to scale.

With MCP, the user shows up with their own AI system and expects only one thing: structured access to your services and information. No need to worry about UX, training models, or customer flows—just expose what you do best.

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2. Traditional Call Centers Become Obsolete

Instead of calling your support line, a customer can query their AI assistant, which connects directly to your systems, gathers answers, or executes tasks.

No queues. No wait times. No pressure on your staffing model. Operations move into a seamless, automated ecosystem.

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3. New Business Models and Brand Trust

Because users will bring their own trusted digital interface, companies no longer carry the burden of poor chatbot experiences. And thanks to MCP’s built-in structure for access control and transparency, businesses can decide who sees what, when, and how—while building trust and reducing risks.

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What This Means for Everyday Users

• One interface for everything
• No more juggling dozens of logins, websites, or apps. One assistant does it all.
• True autonomy
• Your digital assistant can order products, compare options, request refunds, or manage appointments—no manual effort required.
• Smarter, faster decisions
• The system knows your preferences, history, and goals—and makes intelligent recommendations tailored to you.

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Practical example:

You ask your AI to generate a recipe, check your pantry, compare prices across online grocers, pick the cheapest options, and schedule delivery—all in one go, no clicking required.

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The Underrated Challenge: Data

For this to work, users will need to give their AI systems access to personal data. And companies will need to open up parts of their systems to the outside world. That’s where trust, governance, and security become mission-critical. MCP provides a standardized framework for managing access, ensuring safety, and scaling cooperation between systems—without replicating sensitive data or creating silos.

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🧠 What Are AI Agents?

An AI agent is a digital assistant capable of independently executing complex tasks based on a specific goal. It’s more than just a chatbot answering questions. Modern AI agents can:

• Plan multiple steps ahead
• Call APIs, work with data, create content, or search for information
• Adapt their behavior based on context, user, or business goals
• Work asynchronously and handle multiple tasks simultaneously

In short, an AI agent functions like a virtual employee — handling tasks dynamically, like a human, but faster, cheaper, and 24/7.

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Why Are AI Agents Trending Right Now?

• Advancements in large language models (LLMs) like GPT-4, Claude, and Mistral allow agents to better understand and generate natural language.
• Automation is becoming goal-driven — instead of saying “write a script,” you can say “find the best candidates for this job.”
• Companies want to scale without increasing costs — AI agents can handle both routine and analytical tasks.
• Productivity and personalization are top priorities — AI agents enable both in real time.

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What Do AI Agents Bring to Businesses?

✅ 1. Save Time and Costs

Unlike traditional automation focused on isolated tasks, AI agents can manage entire workflows. In e-commerce, for example, they can:

• Help choose the right product
• Recommend accessories
• Add items to the cart
• Handle complaints or returns

✅ 2. Boost Conversions and Loyalty

AI agents personalize conversations, learn from interactions, and respond more precisely to customer needs.

✅ 3. Team Relief and Scalability

Instead of manually handling inquiries or data, the agent works nonstop — error-free and without the need to hire more people.

✅ 4. Smarter Decision-Making

Internal agents can assist with competitive analysis, report generation, content creation, or demand forecasting.

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AI Agents in Practice

AI Agent vs. Traditional Chatbot: What's the Difference?

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What Does This Mean for Your Business?

Companies that implement AI agents today gain an edge — not just in efficiency, but in customer experience. In a world where “fast replies” are no longer enough, AI agents bring context, intelligence, and action — exactly what the modern customer expects.

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What’s Next?

AI agents are quickly evolving from assistants to full digital colleagues. Soon, it won’t be unusual to have an “AI teammate” handling tasks, collaborating with your team, and helping your business grow.