Abstract

New legislation often is passed to address potential risks stemming from, for example, technological development. For organizations, this may induce considerations on whether and how they have to comply. IS research has for long engaged in inquiries related to regulation, and regulatory compliance has received interest. In the context of the European AI Act, the AI Pact has been set up with the goal to achieve trustworthy AI ahead of the AI Act legal deadline. This is to be achieved by encouraging and supporting organizations in efforts for early compliance implementation. Through a case study on the AI Pact, applying value co-creation lens, we identified 10 value propositions the AI Pact provides for the general public, targets of the AI Act, regulatory intermediary, and the regulator. We contribute to IS research on regulation and regulatory compliance in three ways. First, we propose the notion of “compliance co-creation” as a useful concept for future compliance-focused IS research. Second, we identify regulatory intermediaries as facilitators and marketers of compliance co-creation. Third, we increase understanding of regulatory compliance beyond the currently dominant individual- and organization-level focus in IS. Our study has practical implications for regulators and IS system providers and deployers.

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