Source: Lexology

Lexology examines how the EU AI Act may inadvertently endanger trade secret protections due to its emphasis on transparency and algorithmic explainability. Companies that rely on confidential models, datasets, or decision-making systems may be forced to disclose sensitive information to meet compliance obligations.

The article discusses specific requirements in the AI Act—such as documentation, traceability, and risk assessments—that could expose proprietary elements to regulators or the public. While the Act includes safeguards for confidentiality, critics argue they are insufficient or too vague.

Legal experts recommend proactive trade secret management, including contractual clauses and internal classification systems, to preserve protection while navigating EU compliance.