EU AI Act Drives Global Corporate Governance Standards

Research by the Thomson Reuters Foundation using the AI Company Data Initiative examined nearly 3,000 firms worldwide. It found that 47 % of the companies that reference the EU Artificial Intelligence Act in their governance reports are headquartered outside the European Union, illustrating the emerging “Brussels Effect” where EU regulation becomes a global benchmark.

The AI Act, which becomes fully enforceable in August 2026, applies to any organization whose AI systems are used in the EU or affect EU citizens, companies, or public bodies. Non‑EU firms therefore face the same binding obligations and potential penalties of up to €35 million or 7 % of annual global revenue, prompting a shift in corporate compliance practices from Washington to Tokyo.