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A Systematic Review of Organizational Readiness for The EU Artificial Intelligence Act in Multinational Enterprises

Michael Ominyi, Cyril Chimelie Anichukwueze, Ngozi Samuel Uzougbo

Abstract

Regulation (EU) 2024/1689, the EU Artificial Intelligence Act, entered into force on 1 August 2024 and established the first comprehensive, horizontal, risk based legal framework for artificial intelligence. Because the Act applies to any provider or deployer placing an AI system on the EU market regardless of where that organization is headquartered, its obligations reach far beyond the EU and fall squarely on multinational enterprises that operate AI systems across multiple regulatory jurisdictions at once. This paper presents a systematic review of the literature published no later than 2024 on the question of organizational readiness among MNEs. Sources were identified through structured searches of academic databases and grey literature repositories, screened against inclusion criteria centered on organizational or enterprise level readiness, and synthesized thematically. Because the Act had only just entered into force at the time of this review, and its most operationally demanding obligations, covering AI literacy, general purpose AI models, and high risk systems, are not due to bind until February 2025, August 2025, and August 2026 respectively, the reviewed literature captures an early and still forming picture of readiness rather than a mature evidence base. The single large-scale survey located for this review, conducted in September 2024, found that only around a quarter of organizations were actively preparing for compliance, while close to half had not yet meaningfully engaged with the Act's requirements at all. MNEs appear to face readiness challenges that are structurally distinct from those of domestic firms, including regulatory fragmentation across jurisdictions, anticipated friction between the AI Act and the General Data Protection Regulation, and structural asymmetries within global value chains, though the literature available as of 2024 addresses these challenges largely at a conceptual rather than empirical level. No dedicated AI Act specific readiness framework had yet appeared in the literature located for this review. The paper synthesizes the frameworks and recommendations available in the literature to date and concludes with a discussion of the review's limitations, foremost among them the fact that the evidence base will necessarily grow as the Act's binding deadlines arrive through 2025 and 2026.

References

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