What the Code Covers
Authored by 13 independent experts and input from over 1,000 stakeholders, the code emphasizes: safety, security, transparency, IP rights management, and high-risk use-case evaluations. Providers aligning with the code will receive regulatory incentives, reduced documentation burdens and legal clarity under the AI Act (up to 7% global-revenue fines for violations). Companies like OpenAI and Google are conducting internal reviews in preparation.

Relevance to Third-Party Risk & Vendor Governance
With many enterprises sourcing from AI vendors, this code offers a vendor-risk litmus test. Buyers can differentiate by:

• Requesting vendor alignment with the EU code;
  
• Using signing status as a triage filter;
  
• Embedding periodic compliance reviews mirroring code principles.

   

Integrating the Code into Cybersecurity Programs

1. Procurement Stage: Include code compliance in RFPs for AI systems.
   
2. Ongoing Monitoring: Schedule periodic control scans—transparency logs, bias testing, red-team results.
   
3. Incident Integration: Post-event reviews must assess whether code violations contributed to failure (e.g., untimely patching, neglecting IP rules).

    

Case Example
A financial firm sourced from a U.S. vendor that didn’t uphold code transparency. A misuse incident led to data exfiltration. Compliance review triggered an automatic audit, uncovering undocumented data sharing. The code served as the audit’s foundation—and justified switching providers.

Conclusion
The EU’s Code of Practice transforms AI governance from theory into vendor accountability. It strengthens cybersecurity by holding AI systems—especially from third parties—to measurable standards. Enterprises in or trading with the EU should adopt it now: define expectations, verify adherence, and integrate code-based audits into risk programs. Forward-thinking organizations will align early—not just for compliance, but for competitive resilience.