With the EU AI Act set to apply to high-risk AI systems from August 2026 as part of its phased rollout[1], scale-up software house Lolly is urging businesses to act now or risk falling behind on compliance, governance and trust.
While AI adoption continues to accelerate across hospitality, many organisations are still operating without the governance structures required under emerging regulation. These challenges are not limited to hospitality alone and are increasingly relevant across regulated sectors, including health technology, where transparency, accountability and safety are critical.
Chris Brown, technology director at Lolly, said: “The EU AI Act isn’t a future problem, it is fast becoming a reality. By August 2026, businesses using high-risk AI systems will need to demonstrate robust risk management, transparency and ongoing monitoring, and I firmly believe that many won’t be prepared. The time to act is now.”
Lolly is among the first UK hospitality technology companies to achieve ISO/IEC 42001 certification, the international standard for Artificial Intelligence Management Systems (AIMS). ISO/IEC 42001 provides a structured framework covering AI risk assessment, data governance, human oversight and continuous monitoring, aligning closely with the EU AI Act’s core requirements. Brown adds:
“Our certification means we already have these controls built into how we design and deploy products. We embed responsible AI from the start, as opposed to putting ourselves in the position where we have to react to regulation later down the line and find ourselves in the position of playing catch-up.”
Although the UK has yet to introduce a standalone AI Act, the UK Government is widely expected to bring forward broader AI legislation. The UK’s cross-sector AI principles — safety, transparency, fairness, accountability and contestability — closely mirror ISO/IEC 42001 requirements[2].
Peter Moore, CEO at Lolly, added: “AI is not optional for the future of our sector. This accreditation ensures our hospitality and retail customers can innovate with confidence, knowing governance, accuracy and ethical deployment sit at the heart of everything we build.”
Central to this approach is Lolly’s LollySense methodology for responsible and practical AI in hospitality technology. The framework is designed to ensure AI solutions are:
- Purposeful and insight-led
- Practical and measurable
- Ethically governed
- Planet-conscious
- Designed to enhance, not replace, human expertise
References
[1] European Commission, EU AI Act overview and implementation timeline
[2] UK Government, AI regulation policy framework (Department for Science, Innovation and Technology)
