The AI Act and Switzerland:
what it really means for SMEs.

AI Act and Switzerland: the European regulation of artificial intelligence and the Swiss approach, and what they mean for SMEs

The AI Act is the first comprehensive law in the world on artificial intelligence: it regulates AI tools according to risk. Switzerland doesn't apply it directly, but is following its own path, and many Swiss SMEs are affected all the same, because the European law reaches beyond the Union's borders.

What is the AI Act and why it matters for Switzerland too

The AI Act is EU Regulation 2024/1689 on artificial intelligence, in force since 1 August 2024. It classifies AI tools by level of risk and imposes escalating obligations: unacceptable-risk systems are banned, while high-risk systems must meet strict rules on transparency and oversight. It's the first comprehensive law of its kind anywhere in the world.

Switzerland isn't directly bound by it, but history is repeating itself: just as the EU's GDPR prompted Switzerland to rewrite its own data protection law, the AI Act is now shaping the Confederation's choices. And for many Swiss businesses the impact is already concrete, for one precise reason: the law's reach doesn't stop at the border. The full text and the official overview are published by the European Commission and the European Parliament.

Why it affects Swiss SMEs even without a base in the EU

The AI Act has extraterritorial effect: it also applies to a Swiss business when it places products or services using artificial intelligence on the European market, or when the output produced by its AI tools is used within the Union. In practice, what counts is your customers and markets, not just your registered office.

A few concrete examples: a Ticino-based supplier selling software with AI features to customers in Germany; a firm processing cases for European clients using automated tools; a business offering an online service also used by people in the Union. A company working exclusively with Swiss customers and suppliers, with no connection to the EU at all, doesn't fall directly under the AI Act, but remains subject to the Swiss rules on their way.

The deadlines that matter (and the ones still in motion)

The AI Act applies in stages. Some obligations are already in force, others will arrive over the coming months. Here's the essential timeline, to use as a reference rather than as legal advice:

One important note: a simplification package is under discussion at European level that could push back some of the high-risk system deadlines. At the time of writing this isn't yet final, so the dates above remain the official reference. It's an evolving topic: anyone affected should check for updates from official sources.

The Swiss approach: the Convention and a sector-by-sector path

Switzerland has chosen a different path from the AI Act. On 12 February 2025, the Federal Council decided to ratify the Council of Europe Convention on Artificial Intelligence, the first international treaty on the subject, and to adapt Swiss law without introducing a single, sweeping AI law.

The direction is official and documented in the Federal Council's press release: the Confederation is aiming for targeted measures in individual sectors, such as healthcare and transport, plus a handful of cross-cutting rules where they matter most, for example on data protection. The Federal Department of Justice has been tasked with preparing a preliminary draft by the end of 2026, focused on transparency, data protection, non-discrimination and human oversight.

In short: the EU regulates with a single, detailed law; Switzerland prefers a more flexible international framework and targeted, sector-specific rules. Two different paths, but ones that converge on the same underlying principles: transparency, control over data, and human accountability.

What a Swiss SME can do today

The most useful response isn't to "wait for the laws," but to put things in order. The European and Swiss rules ask for more or less the same things: knowing which AI tools are in use, what data they process, where the answers come from, and who checks them. These are exactly the good practices that make automation reliable regardless of any legal obligation.

Three concrete steps within reach of any business: take stock of the AI tools already in use (often more than people think); set clear rules on which company data can and can't be entered into these tools; and organise your company knowledge so automated answers can be traced back to their source. We've dedicated an in-depth piece to this last point, on how a company knowledge base makes automation reliable and verifiable: it is, in effect, a piece of compliance built in advance.

It's also how we work: every project starts with a free 60-minute audit to map out tools, data and processes, and for law firms, trust companies and medical practices, checking compliance with Swiss data protection is part of that initial analysis.

Important note. This article is an informational overview, not legal advice. Dedalix is not a law firm: to assess your company's specific position with regard to the AI Act or Swiss legislation, you should consult a lawyer or a data protection specialist.

Frequently asked questions

Does the EU AI Act apply to Swiss companies?

Yes, in some cases. Switzerland isn't part of the European Union, but the AI Act has extraterritorial effect: it also applies to Swiss businesses that place products or services using artificial intelligence on the EU market, or whose output is used within the Union. Companies with no dealings with the EU aren't directly subject to it.

Will Switzerland have its own law on artificial intelligence?

Yes, but with a different approach. On 12 February 2025 the Federal Council decided to ratify the Council of Europe Convention on AI and to prepare a preliminary draft law by the end of 2026, focused on transparency, data protection, non-discrimination and human oversight, with targeted, sector-by-sector adjustments rather than a single law like the AI Act.

What are the AI Act's deadlines?

The AI Act has been in force since 1 August 2024, with staggered application: the ban on prohibited practices has applied since 2 February 2025, the rules on general-purpose models since 2 August 2025, and the obligations for high-risk systems from 2 August 2026. Some deadlines could still be pushed back, a possibility currently under discussion at European level.

Should a small Swiss business worry about this now?

It depends on how it's used. There's no need to panic, but now is the time to get organised: know which AI tools are in use, what data they process, and where the answers come from. These are the same good practices that make automation reliable today, and that European and Swiss rules will require tomorrow.

Is this article legal advice?

No. It's an informational overview to help you get your bearings. Dedalix is not a law firm: to assess your company's specific position with regard to the AI Act or Swiss legislation, you should consult a lawyer or a data protection specialist.

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