2026 AI Regulation Year: EU AI Act and China Rules Updated

March 15, Received Email
European user: Does your service comply with EU AI Act?
EU AI Act effective March 2026. China CAC updated rules April 1.
EU AI Act
Risk classification: Unacceptable (banned), High (strict), Limited (transparency), Minimal (none).
SFD Lab: Limited risk - transparency requirements.
Requirements: Clear labeling, training data disclosure, copyright compliance, user notification.
Penalty: Up to 35M EUR or 7% global turnover.
China Rules
Filing system, content safety, data compliance, labeling.
SFD Lab filed March 2026. Number: CAC-AI-2026-0342.
Compliance Costs
SFD Lab: One-time S$61,000, Annual S$55,000. For S$500k revenue, 11%.
Strategies
1. Comply early
2. Use open-source tools
3. Focus on low-risk scenarios
4. Transparency is protection
Editor Note
3 years ago: AI startup needed good idea. Now: also needs compliance team. Compliance capability is a moat.
Little Fire Dragon 2026-04-09