Europe's regulatory framework for artificial intelligence is becoming increasingly stringent, but a significant problem has emerged: most companies deploying AI systems lack the actual technology to prove they're compliant. The EU AI Act (EUAI) and related regulations are raising the bar for responsible AI deployment, yet enterprises across Europe and Latin America are struggling to implement the governance infrastructure needed to meet these requirements in practice. A new partnership between Telefonica Tech and Openlayer is attempting to solve this enforcement problem by providing enterprises with pre-deployment testing and continuous monitoring tools designed specifically for regulated industries .

What's the Real Problem With EU AI Compliance?

The challenge isn't that companies don't want to comply with the EU AI Act. Rather, most organizations are cobbling together fragmented tools and relying on manual documentation to manage AI risk, according to Openlayer. This patchwork approach leaves significant gaps in oversight, especially for enterprises operating in highly regulated sectors like finance, healthcare, and telecommunications. The European Commission has been actively enforcing the Digital Services Act (DSA) and other digital regulations, opening formal proceedings against major platforms like Shein and TikTok for failing to meet transparency and safety obligations . These enforcement actions signal that regulators expect companies to have robust governance systems in place, not just good intentions.

The disconnect between regulatory expectations and available tools creates what Openlayer describes as a governance infrastructure crisis. Companies need to test AI systems before launch and assess them continuously in production, but doing so requires specialized technology that most enterprises haven't yet integrated into their development workflows.

How Can Enterprises Build Effective AI Governance?

• Pre-Deployment Testing: Conduct structured testing across hallucinations (instances where AI generates false information), bias, toxicity, and robustness before any system goes live to ensure alignment with local regulations
• Real-Time Monitoring: Implement continuous observability features that track AI system behavior in production, allowing teams to detect compliance issues as they emerge rather than discovering them during audits
• Integrated Consulting Support: Partner with organizations that provide both technology infrastructure and local expertise in systems integration, managed operations, and regulatory guidance specific to your region

The Telefonica Tech and Openlayer partnership addresses these needs by combining technology and consulting expertise. Openlayer contributes the testing and monitoring technology layer, while Telefonica Tech provides consulting, systems integration, managed operations, and local support across Europe and Latin America. This combination is designed to eliminate the need for companies to assemble point solutions from multiple vendors, which typically results in gaps and inconsistencies in compliance coverage.

Why Is This Partnership Significant for European Enterprises?

The timing of this partnership reflects growing regulatory pressure across Europe. The European Commission has established an AI Office and created a Taskforce to oversee the General-Purpose AI Code of Practice, signaling that enforcement of AI regulations will intensify . Member states are also taking action independently. Spain's Council of Ministers voted to investigate major platforms over alleged AI-enabled creation of child sexual abuse material, while Poland's competition authority opened investigations into Meta over failure to provide effective user contact channels . These enforcement actions demonstrate that regulators are moving beyond issuing guidelines to actively holding companies accountable.

"Regulatory frameworks like the EU AI Act are raising the standard for what responsible AI deployment looks like, but policy alone doesn't create accountability. You need technology that can enforce those requirements continuously, in production, at scale," said Gabriel Bayomi, CEO of Openlayer.

Gabriel Bayomi, CEO at Openlayer

Bayomi's statement captures the core insight: regulation without enforcement mechanisms is incomplete. The EU AI Act provides the rules, but companies need tools to demonstrate compliance at scale. This is particularly important for enterprises operating across multiple European jurisdictions, each with its own regulatory nuances and enforcement priorities.

The partnership also reflects a broader shift in how European regulators approach digital governance. Rather than relying solely on post-hoc enforcement against violations, regulators are increasingly expecting companies to build compliance into their systems from the ground up. The Digital Services Act enforcement actions against Shein and TikTok, for example, focused on failures in risk assessment and transparency mechanisms that should have been built into the platforms' operations . This suggests that future enforcement will reward companies that can demonstrate continuous, systematic compliance monitoring.

For enterprises considering how to approach EU AI Act compliance, the Telefonica Tech and Openlayer model offers a practical pathway: combine specialized testing technology with local regulatory expertise and managed operations support. This approach acknowledges that compliance isn't a one-time certification but an ongoing operational requirement. As European regulators continue to establish enforcement precedents through actions against major platforms, companies that invest in robust governance infrastructure now will be better positioned to adapt to evolving requirements and avoid costly violations later.