The EU’s new AI Act—the world’s first legal framework for artificial intelligence requires companies to treat AI as a real risk, with rules around labeling AI content, ensuring human oversight, protecting data, and monitoring system performance. With steep penalties for noncompliance and similar U.S. guidance emerging, the piece urges boards and leaders to bring AI under the umbrella of existing risk, ethics, and governance frameworks—treating it not as a tech issue, but as a core part of responsible corporate strategy.