Regulators Urged to Shift Toward AI Implementation and Enforcement

Robust enforcement mechanisms are now vital to ensuring the credibility and success of global AI regulatory frameworks, according to a new report from Omdia. “The establishment of protocols for addressing non-compliance is a critical component of any effective AI governance structure,” stated Sarah McBride, Principal Analyst for Regulation at Omdia. “While financial penalties remain the most prevalent enforcement tool, some jurisdictions have introduced sanctions including service suspensions and, in extreme cases, criminal prosecution.”

Under the EU AI Act, organizations may face fines of up to €35 million or 7% of total global annual turnover. Similarly, South Korea’s AI Basic Act provides for fines reaching KRW30 million (approximately $20,000) for violations. Omdia has identified seven fundamental challenges that these frameworks must address: safety; privacy and copyright; controllability; ethics; transparency; security; and cross-border interoperability.

Omdia also reviewed global AI policy initiatives, noting that many nations have launched strategies aimed at securing leadership in the global AI economy. “These strategies generally emphasize research support, workforce development, and the strengthening of data and ICT infrastructure,” McBride added. “AI sovereignty has also emerged as a significant priority for governments due to economic and national security considerations.”

Despite the proliferation of national strategies, few regulators have implemented dedicated AI laws; the EU AI Act took effect in August 2024, with its requirements being phased in over time. South Korea’s AI Basic Act commenced in January 2026, though a one-year grace period is currently in effect before penalties are applied. “For telecommunications firms, these regulations will primarily result in increased compliance obligations and higher operational overhead. Following the initial design phase, regulators must now pivot toward practical implementation, effective enforcement, and providing industry-specific guidance,” McBride concluded.