Lolly Warns Businesses That AI Governance Is No Longer Optional: The Time to Prepare Is Now

With the EU AI Act set to come into full force for high-risk AI systems in August 2026, 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.

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 became the first UK hospitality technology company to achieve ISO42001 certification, the new international standard for Artificial Intelligence Management Systems (AIMS). ISO42001 provides a structured framework covering AI risk assessment, data governance, human oversight and continuous monitoring, all of which closely align 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, Lolly warns that businesses should not delay preparation. The government is expected to bring forward broader AI legislation. The UK’s five cross-sector AI principles of: safety, transparency, fairness, accountability and contestability closely mirror the ISO42001 requirements.

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 proprietary LollySense methodology for responsible, and practical AI in hospitality technology. The framework ensures AI solutions are:

- Purposeful and insight-led

- Practical and measurable

- Ethically governed

- Planet-conscious

- Designed to enhance, not replace human expertise