AccountabilityExplainabilityPrivacycs.CY
Responsible AI in Business
Stephan Sandfuchs, Diako Farooghi, Janis Mohr, Sarah Grewe, Markus Lemmen, Jörg Frochte
January 31, 2026
arXiv.org
Key Takeaways
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Regulatory compliance requires clear role definition: The EU AI Act distinguishes between AI providers and deployers, each with specific obligations including risk assessment, documentation, and transparency requirements—organizations must understand which role they occupy to meet legal standards.
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Explainability builds trust and is operationally feasible: Making AI systems more understandable through transparency, interpretability, and explainability measures is not just ethically important but practically achievable, enabling organizations to better understand model behavior and decisions.
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Environmental impact matters as much as performance: AI systems should be evaluated based on energy and resource consumption alongside accuracy metrics, with practical solutions available including model reuse, compression, and continuous monitoring to reduce environmental footprint.
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Local AI deployment offers strategic advantages: Running AI models on-premise or at the edge (rather than in the cloud) provides organizations with better data protection, greater control, lower latency, and strategic independence—particularly valuable for SMEs concerned about data sovereignty.
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AI literacy is a compliance requirement, not optional: The paper identifies AI literacy measures as mandatory obligations under responsible AI frameworks, meaning organizations must invest in employee training to understand and responsibly operate AI systems.