What is a major challenge for SMEs developing high-risk AI systems?

Time and financial constraints for compliance are significant challenges for small and medium-sized enterprises (SMEs) developing high-risk AI systems. SMEs often operate with limited budgets and personnel compared to larger corporations, which makes it difficult for them to allocate sufficient resources toward compliance with regulations and standards associated with high-risk AI development. This includes ensuring that their systems meet ethical guidelines, safety standards, and other legal requirements, all of which can be costly and time-consuming.

In contrast, large organizations typically have more resources at their disposal to dedicate to compliance efforts. This disparity can hinder SMEs from being competitive in developing high-risk AI technologies, potentially leading to incomplete or inadequate compliance measures that pose risks to users and society. Additionally, the burden of keeping up with evolving regulations can further strain the limited resources of these enterprises, making compliance a major hurdle in their AI development efforts.