Publication date: 05.02.2026
Legal advisor with international experience in corporate law and technology projects. Specializing in supporting businesses, startups and AI companies in the UK, including assessing legal, tax and ethical risks.
In 2026, an innovative European artificial intelligence company approached me, attorney Daryna Kostiuchyk, seeking legal support in structuring its AI-driven business operations and ensuring compliance with emerging EU regulatory frameworks. The client was developing advanced machine-learning solutions for corporate automation, but faced increasing legal uncertainty regarding intellectual property protection, contractual safeguards with enterprise customers, and compliance obligations under the new EU AI Act and GDPR standards. Without proper legal guidance, the company risked regulatory exposure, weakened investor confidence, and potential disputes over AI-generated assets and data usage rights.
Client's core challenges:
— Legal uncertainty regarding compliance with the EU AI Act requirements;
— Risks of improper handling of personal data used for AI model training;
— Lack of clear contractual frameworks for enterprise AI service delivery;
— Intellectual property concerns related to AI-generated outputs and software ownership;
— Need for scalable governance policies for responsible AI deployment;
— Pressure from investors to ensure regulatory readiness before market expansion.
Strategic Legal Approach to AI Compliance and Business Protection
My first step was to conduct a comprehensive legal audit of the client’s AI business model, data processing workflows, and contractual relationships with technology partners and customers. The review identified gaps in AI risk classification procedures, insufficient data governance frameworks, and the absence of standardized legal terms addressing AI-specific liability and intellectual property ownership.
I developed a tailored legal strategy focusing on the following pillars:
- Assessing AI system classification and compliance obligations under the EU AI Act.
- Implementing GDPR-compliant data governance policies for AI model development.
- Drafting AI-focused commercial agreements with enterprise customers and partners.
- Structuring intellectual property protection for AI software and generated outputs.
- Establishing responsible AI governance frameworks to mitigate liability risks.
Implemented Solutions and Legal Measures
During the implementation phase, I provided full legal support to ensure that the AI company was both contractually protected and fully aligned with EU compliance standards. The process strengthened regulatory readiness and reduced long-term operational risks.
- Conducting an AI compliance risk assessment aligned with EU AI Act principles.
- Drafting GDPR-compliant data processing agreements and AI training data policies.
- Preparing enterprise AI service contracts with clear liability, transparency, and accountability clauses.
- Advising on intellectual property ownership structures for AI-generated content and proprietary algorithms.
- Developing internal governance procedures for responsible AI deployment and regulatory reporting.
Results and Benefits Realized
- Achieved regulatory readiness under the emerging EU AI Act compliance framework.
- Implemented robust GDPR-aligned governance for AI data processing activities.
- Secured intellectual property rights for AI software and generated business assets.
- Strengthened investor confidence through proactive AI legal risk management.
- Reduced exposure to contractual disputes through AI-specific enterprise agreements.
- Built a scalable compliance foundation for EU-wide expansion of AI services.
Client review
Frequently Asked Questions (FAQ)
Question
Why is the EU AI Act important for AI companies operating in Europe?
Answer
The EU AI Act introduces compliance obligations based on AI risk classification, requiring transparency, governance, and accountability to ensure lawful and responsible AI deployment across the EU market.
Question
How does GDPR impact AI model training and data usage?
Answer
GDPR regulates how personal data can be collected, processed, and used for AI development. Proper governance is essential to avoid fines and ensure lawful AI training practices.
Question
Can AI-generated outputs be protected under intellectual property law?
Answer
Yes, with the correct legal structuring, AI companies can protect proprietary algorithms, software frameworks, and define ownership rights over AI-generated business assets through contractual and IP mechanisms.
Through a comprehensive AI-focused legal strategy, the client successfully strengthened compliance readiness under the EU AI Act, secured intellectual property protection, and implemented GDPR-aligned governance frameworks.
This case demonstrates how professional legal counsel can help AI companies navigate complex regulatory landscapes while building a secure foundation for innovation and growth in 2026 and beyond.
