Does the EU AI Act apply to Swiss and UK fashion brands? AI rules outside the EU

KEY TAKEAWAYS Summary by the editors

1. The EU AI Act applies to providers placing AI systems on the EU market regardless of where they are established, and to non-EU providers and deployers where the AI output is used in the EU.
2. Switzerland has no AI-specific law; on 12 February 2025 the Federal Council decided to incorporate the Council of Europe AI Convention into Swiss law through mainly sector-specific amendments.
3. A Swiss consultation draft on AI legal measures, covering areas such as transparency, data protection, non-discrimination and supervision, is due by the end of 2026.
4. The UK has no AI bill before Parliament and regulates AI through existing sector regulators and data protection law.
5. The UK Data (Use and Access) Act 2025 replaced the UK GDPR's Article 22 with new rules on automated decision-making, and most of its data protection provisions came into force on 5 February 2026.

Often, yes. A Swiss or British fashion brand that sells AI-based tools in the EU, or whose AI output is used in the EU, for example a chatbot on an EU webshop or AI-generated imagery shown to EU customers, falls within the territorial scope of the EU AI Act. At home, neither Switzerland nor the UK has an AI Act: both rely on existing law, above all data protection, while preparing targeted changes. In practice most brands with EU sales will align with the EU rules.

When does the EU AI Act apply to a non-EU fashion brand?

Article 2 of the AI Act sets three main hooks. It covers providers placing AI systems on the EU market or putting them into service, irrespective of where they are established; deployers established or located in the EU; and providers and deployers in third countries where the output produced by the AI system is used in the Union.

Even where the Act does not formally apply, Swiss lawyers expect indirect effects. VISCHER notes that Swiss providers of high-risk systems for the EU need an EU conformity assessment and an EU representative, and that Swiss companies are likely to comply indirectly because they will buy products built for the EU market.

What AI rules apply in Switzerland today?

Switzerland has deliberately not copied the AI Act. On 12 February 2025 the Federal Council presented its overview of regulatory approaches and decided that the Council of Europe's Framework Convention on AI will be incorporated into Swiss law. According to the Federal Office of Communications (OFCOM), legal changes should be sector-specific where possible, with general cross-sector rules limited to central fundamental-rights areas such as data protection. Non-binding measures such as self-declaration agreements and industry solutions are being developed alongside.

• By the end of 2026: the Federal Department of Justice and Police, with other departments, is to prepare a consultation draft setting out legal measures in areas including transparency, data protection, non-discrimination and supervision.
• By the end of 2026: an implementation plan for non-legislative measures, considering compatibility with Switzerland's main trading partners.
• Today: existing law applies. VISCHER stresses there is no legal vacuum: the Data Protection Act applies wherever AI processes personal data, and unfair competition law can apply to deceptive AI-generated content.

The Council of Europe Convention mainly binds states. VISCHER's analysis is that private companies are affected chiefly where AI use has a direct or indirect impact on fundamental rights, for example in equal pay, discrimination, data protection or workplace surveillance, and that adjustments are likely to take several years.

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What AI rules apply in the UK?

The UK also has no single AI law. According to Scaffold Digital's 2026 overview, the government's position since February 2025 has been that most AI should be regulated at the point of use by existing expert regulators, and there is no AI bill before Parliament. Legislation for the most powerful models has been promised but not introduced.

The main recent change is in data protection. The Data (Use and Access) Act 2025 replaced Article 22 of the UK GDPR with new Articles 22A to 22D on automated decision-making. Solely automated decisions about individuals are permitted in more circumstances, provided safeguards such as transparency, the ability to contest and human review are in place. The government's commencement plan states that the majority of the Act's data protection provisions came into force on 5 February 2026. The Information Commissioner's Office consulted on updated guidance on automated decision-making and profiling between March and May 2026.

How should a Swiss or UK fashion brand respond?

1. Map EU exposure. List every AI system whose output reaches EU customers, employees or partners, and every EU entity that deploys AI.
2. Apply EU transparency rules by default to webshops, chatbots and imagery used across markets, since separate versions add cost without much benefit.
3. Treat HR AI in EU subsidiaries as high-risk and prepare human oversight and worker information ahead of the high-risk rules.
4. Keep data protection at the centre at home: the Swiss Data Protection Act and the UK GDPR already govern most AI use involving customer or employee data.
5. Watch two dates: the Swiss consultation draft due by the end of 2026, and final ICO guidance on automated decisions.

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What skills and team structures do fashion companies need for AI?

What are the risks of waiting?

The main risk is not an immediate fine at home but fragmentation: tools introduced in Zurich or London without EU-grade documentation and disclosure later need retrofitting before they can be rolled out to EU markets. Contracts signed now with AI vendors should already assume EU requirements, because suppliers to EU customers will build to that standard anyway.

There is also a reputational dimension. Customers in all three markets encounter the same campaigns and chatbots, and inconsistent disclosure between countries is hard to explain. A single standard, applied group-wide and adjusted for local data protection detail, is easier to defend and to operate.

Frequently asked questions

Does the EU AI Act apply to Swiss companies?

Yes, where a Swiss company places AI systems on the EU market or where the output of its AI system is used in the EU. AI used only internally in Switzerland is generally outside its scope.

Does Switzerland have an AI law?

Not yet. The Federal Council decided in February 2025 to incorporate the Council of Europe AI Convention through mainly sector-specific amendments, with a consultation draft due by the end of 2026. Existing law, especially data protection, already applies to AI.

Is there a UK AI Act?

No. The UK regulates AI through existing regulators and laws. The Data (Use and Access) Act 2025 changed the rules on automated decision-making, with most data protection provisions in force since 5 February 2026.

Should a UK brand selling in the EU follow the AI Act?

For AI whose output is used in the EU, such as chatbots or imagery on EU sites, the Act applies directly. Many brands apply EU standards group-wide to avoid running separate processes.

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