Impact of New Digital Legislation on Irish and European Businesses in 2024

The 2024 Digital Legislation, including the EU AI Act, Digital Services Act (DSA), NIS2 Directive, and Cyber Resilience Act, significantly impacts Irish and European businesses. Key areas affected include AI regulation, cybersecurity, and platform accountability. Irish businesses must adapt to new compliance measures to ensure operational integrity and data protection across digital platforms, AI systems, and critical infrastructure.

Key Takeaways:

• Audit AI Systems Now: Evaluate and classify your AI systems to ensure they meet the EU AI Act’s new risk-based compliance standards.
• Strengthen Cyber Defenses: Immediately upgrade your cybersecurity infrastructure to comply with the NIS2 Directive and the Cyber Resilience Act.
• Revise Platform Policies: Update content moderation and transparency practices to align with the stringent requirements of the Digital Services Act.
• Leverage Expert Services: Use specialised document management and compliance services to navigate the complexities of the new digital legislation.

What’s Happening with Digital Legislation in 2024?

In 2024, several significant legislative changes under the umbrella of Digital Legislation are set to impact businesses in Ireland and across Europe. These include the EU Artificial Intelligence (AI) Act, the Digital Services Act (DSA), the Network and Information Security Directive 2 (NIS2), and the Cyber Resilience Act. These laws aim to enhance digital safety, transparency, and resilience within the European Union, fundamentally influencing business operations.

What is New? What is Changing?

AI Act: A New AI Regulation

• What’s New: The AI Act is pioneering EU legislation that categorizes AI systems based on their risk levels. New classifications include high-risk AI systems used in healthcare, recruitment, and law enforcement, which must now adhere to strict requirements. These include robust data governance, transparency, and human oversight measures.
• What’s Changing: AI systems posing unacceptable risks, such as those enabling social scoring or real-time biometric identification, are now banned under this AI Regulation. This is a significant change aimed at protecting fundamental rights and ensuring ethical AI deployment.

Digital Services Act (DSA): Enhancing Digital Platform Accountability

• What’s New: The Digital Services Act introduces comprehensive measures targeting large online platforms to enhance transparency, user safety, and accountability. Platforms must now provide clear information about content moderation practices.
• What’s Changing: A notable change in the Digital Services Act is the requirement for platforms to swiftly act against illegal content. Regular risk assessments and independent audits are also mandatory, ensuring platforms maintain rigorous oversight and compliance.

Network and Information Security Directive 2 (NIS2): Strengthening Cybersecurity

• What’s New: The NIS2 Directive significantly expands the scope of the original NIS Directive, now covering more sectors and imposing stricter security requirements.
• What’s Changing: This directive enhances the EU’s cybersecurity framework by requiring essential and important entities to adopt robust cybersecurity measures. This change aims to better protect critical infrastructure against cyber threats, in line with the new Digital Legislation.

Cyber Resilience Act: Ensuring Cybersecurity Across Digital Products

• What’s New: The Cyber Resilience Act focuses on ensuring the cybersecurity of digital products and services by setting common standards for security throughout the product lifecycle.
• What’s Changing: A unified cybersecurity framework is being established to address vulnerabilities in both hardware and software. This is a change aimed at providing consistent and comprehensive protection across the EU, critical under the Cyber Resilience Act.

Impact of 2024 Digital Legislation on Businesses

These legislative changes will require businesses to implement new compliance measures, particularly in the areas of AI, data transparency, cybersecurity, and user protection. Businesses using AI systems will need to adapt their development and deployment processes to meet the EU AI Act’s requirements. Digital platforms must enhance their content moderation and transparency practices in line with the Digital Services Act. Companies in critical sectors will need to upgrade their cybersecurity measures to comply with NIS2, while all digital product providers must ensure their products meet the Cyber Resilience Act’s standards.

What Do Businesses Need to Do to Prepare for These Changes?

• Assess and Adjust AI Systems
  Businesses using AI must conduct thorough assessments to classify their AI systems according to the new risk categories and implement necessary compliance measures, especially under the EU AI Act.
• Enhance Transparency and User Safety
  Digital platforms need to improve their content moderation practices, provide clear information to users, and conduct regular risk assessments and audits in accordance with the Digital Services Act.
• Upgrade Cybersecurity Measures
  Companies in critical sectors should enhance their cybersecurity frameworks, ensuring they meet the new standards set by the NIS2 Directive.
• Ensure Cyber Resilience
  Digital product providers must integrate security features throughout the product lifecycle and conduct regular security assessments and vulnerability management as required by the Cyber Resilience Act.

Practical Advice for Businesses to Meet the Challenges of New Digital Legislation

The new Digital Legislation in 2024, including the AI Act, Digital Services Act (DSA), Network and Information Security Directive 2 (NIS2), and Cyber Resilience Act, requires businesses to adopt comprehensive strategies for compliance. Here are practical steps to help businesses navigate these changes:

1. Conduct Comprehensive Assessments
   • Risk Assessment for AI Systems: Identify and categorise your AI systems based on risk levels. Conduct regular assessments to ensure compliance with the EU AI Act, focusing on data governance, transparency, and human oversight.
   • Content Moderation and Transparency: For digital platforms, assess current content moderation practices. Implement systems to improve transparency, user safety, and accountability as required by the Digital Services Act.
   • Cybersecurity Evaluation: Review and upgrade cybersecurity measures to meet the NIS2 Directive requirements. Ensure your systems are robust against cyber threats and comply with new standards.
2. Implement Advanced Technology Solutions
   • AI and Automation: Leverage AI and automation tools to streamline compliance processes. For example, using AI-powered invoice automation can help manage data governance and transparency requirements efficiently under the EU AI Act.
   • Document Management Systems: Adopt comprehensive document management solutions to enhance data storage, retrieval, and security. This will help in maintaining compliance with both the Digital Services Act and the Cyber Resilience Act.
3. Strengthen Data Governance
   • Data Policies and Procedures: Develop and enforce robust data governance policies. Ensure proper handling, processing, and storage of data in compliance with GDPR and the new Digital Legislation.
   • Employee Training: Train employees on data protection principles and compliance requirements. This will help in maintaining data integrity and security across the organisation.
4. Enhance Cybersecurity Measures
   • Regular Security Audits: Conduct frequent security audits to identify and mitigate vulnerabilities. Ensure your cybersecurity framework is aligned with the NIS2 Directive standards.
   • Incident Response Plan: Develop a comprehensive incident response plan to quickly address and manage data breaches or cyber-attacks.
5. Maintain Transparency and Accountability
   • Regular Reporting and Audits: Implement regular reporting and auditing processes to ensure compliance with transparency and accountability requirements. This is crucial for both the EU AI Act and the Digital Services Act.
   • Stakeholder Communication: Communicate clearly with stakeholders about your compliance efforts and data protection measures. This helps in building trust and demonstrating accountability.
6. Leverage Expert Services
   • Consultancy Services: Consider engaging with consultancy services to get expert advice on compliance strategies. This can help in effectively navigating the complexities of the new Digital Legislation.
   • Automation and Digital Solutions: Utilise services like those offered by Kefron for invoice automation, document management, and data capture to streamline compliance processes and enhance operational efficiency.

How Document Management Services Can Ensure Compliance with New Digital Legislation

Given the challenges posed by the new Digital Legislation, Kefron’s services can play a crucial role in helping businesses comply effectively. Here’s how Kefron can assist:

Online Document Solutions – Maintain Transparency and Accountability

Kefron’s Online Document Solutions and Kefron AP invoice automation solution enable secure, efficient storage, search, and processing of documents. This supports compliance with the Digital Services Act by ensuring that businesses can easily access and audit their digital records, thereby maintaining transparency and accountability.

Scanning and Data Capture – Strengthen Data Governance

Kefron’s Scanning and Data Capture services ensure the secure digital capture and storage of sensitive information, enhancing GDPR compliance and overall cybersecurity. This is particularly important for meeting the stringent security requirements of the NIS2 Directive, as it helps protect data integrity and accessibility.

Document Storage & Records Management – Enhance Cybersecurity Measures

Kefron’s Document Storage & Records Management solutions provide secure offsite storage with robust security protocols and continuous monitoring. This ensures that digital products and sensitive documents are protected against cyber threats, helping businesses comply with the Cyber Resilience Act’s requirements for data security. The secure management of GDPR-sensitive records and timely destruction of obsolete data also prevent penalties and ensure full audibility.

By leveraging these Kefron services, Irish businesses can efficiently navigate the complexities of the new Digital Legislation. Kefron’s expertise in document management, data security, and process automation supports businesses in achieving compliance, enhancing operational efficiency, and maintaining robust data protection standards. For more detailed information on how Kefron can assist your business, visit Kefron’s official website.

_____________
Author: Stephen Mackey
Stephen Mackey specializes in transforming unstructured data into compliant, actionable information. He has deep expertise in information rights management (IRM) and data capture across diverse industries. Stephen’s skills span from simple data collaboration to complex document and enterprise content management systems. He emphasizes thorough account management and insists on achieving excellence right from the start, ensuring solutions that deliver tangible benefits in cost and process efficiencies.