The Hot Potato of Compliance

From GDPR to the EU AI Act, a recurring pattern emerges: European regulation lands in procurement, spreading responsibility, caution, and friction.

The Hot Potato of Compliance

I have been noticing a pattern for some time now, without quite knowing how to name it.

As an entrepreneur, and earlier inside larger organisations, I kept encountering the same kind of friction. Deals that looked straightforward would slow down late in the process. Not because of price or technology, but because of questions that appeared at the moment contracts were about to be signed.

I first saw this clearly with GDPR. Now, with the EU AI Act and the emerging idea of AI literacy, I recognise the same dynamic returning.

Where regulation actually lands

We tend to picture regulation as something that happens after the fact. Inspectors, fines, enforcement actions. In practice, much of European digital regulation lands much earlier.

It lands at procurement.

That is the point where responsibility becomes fixed. Once a contract is signed, an organisation cannot easily claim ignorance or shift liability elsewhere. So uncertainty flows downhill until it reaches the place where a signature is required.

Procurement becomes the final gate, not by design of the organisation, but by design of the law.

đź’ˇ
Procurement is the structured way organisations decide what to buy, from whom, and under which conditions. It covers the full journey of identifying a need, selecting suppliers, running tenders, negotiating contracts, managing risks, and checking that money is well spent. In many companies it acts as a gatekeeper between internal ambition and external markets, balancing cost, quality, legal obligations, and strategic fit. Done well, procurement protects organisations from financial, legal, and ethical exposure while helping them secure the best long-term partnerships.

A familiar pattern from GDPR

With GDPR, this became highly visible.

The regulation was intentionally abstract. Concepts like “appropriate measures” and “demonstrable compliance” were left open. That openness created space for interpretation, but also for anxiety.

Organisations responded by internalising that uncertainty. Procurement processes became more defensive. Vendor questionnaires expanded. Standard clauses multiplied. Sales cycles slowed, especially for smaller suppliers.

This was often framed as bureaucracy. Seen differently, it was regulation working as intended.

Spreading responsibility, spreading risk

European regulation often spreads responsibility across the market rather than centralising enforcement.

That is efficient. Supervisors do not need to inspect everything. Organisations are incentivised to police themselves, and each other, through contracts.

But there is a side effect. Responsibility spreads, and so does risk aversion.

Procurement teams often end up holding a kind of hot potato. They do not own the technology, nor the policy goals, yet they are asked to absorb uncertainty on behalf of the organisation. Saying “yes” can feel riskier than saying “no”.

Why AI intensifies this effect

With AI, this dynamic becomes sharper.

AI systems are complex, probabilistic, and often hard to explain fully, even by their creators. Asking procurement to confidently assess such systems is asking them to manage uncertainty they are not structurally equipped to resolve.

The result is not outright rejection, but friction. Slower decisions. More documentation. More caution.

From experience, I see the same lines forming again. Not yet fully drawn, but recognisable.

A very European logic

Regulation via procurement is not new. It has existed for decades in areas like environmental standards, safety, and finance.

What feels distinctly European is how deeply this logic is now applied to digital infrastructure and AI. Responsibility is embedded ex ante, at the moment of decision, rather than enforced primarily after harm has occurred.

Whether this ultimately hampers innovation or builds long-term trust is still an open question. Probably both.

What seems clear to me is this: when procurement slows things down, it is not simply being difficult. It is where policy becomes real.

And perhaps that is exactly the point.

Learning to Work with the EU AI Act
I used to avoid EU regulation. Now I’m learning to work with it. The AI Act isn’t perfect, but it’s shaping how I think about risk, trust, and tech.
Introduction to GDPR
A comprehensive guide to GDPR for online professionals. Understand its scope, penalties for non-compliance, and why it’s crucial for your business.
Playing the EU Game: Learning the Digital Rules by Getting in the Game
From grants to governance, the EU’s digital world is a maze. I dove in—starting with DG CONNECT, DIGITAL, and the logic behind the rules.