Insights and updates

From emerging regulation to deal mechanics, we write about the questions founders and investors actually ask — practical analysis you can put to work.

ESOP (Employee Stock Option Plan)

An ESOP is a plan granting employees the right to acquire company shares at a preset price after vesting — the standard startup retention tool, with distinct Turkish-law mechanics (TTK conditional capital increase) and tax treatment.

AI Washing

AI washing is overstating or misrepresenting a product’s AI capabilities to investors or customers — exposure runs through securities fraud (SEC enforcement), consumer protection and unfair competition law, plus warranty claims in M&A and financing documents.

AI Agent (Agentic AI)

An AI agent is an AI system that plans and executes multi-step tasks toward a goal with limited human intervention — calling tools, browsing, transacting. Agentic autonomy stresses the AI Act’s classification, transparency and oversight rules and contract-law basics on authority.

Human Oversight (Article 14)

Human oversight is the Article 14 requirement that high-risk AI systems be designed so natural persons can effectively oversee them — understand outputs, catch automation bias, intervene, and stop the system — with deployer-side duties to staff and empower overseers.

Post-Market Monitoring (AI Act)

Post-market monitoring is the provider’s Article 72 duty to systematically collect and analyse data on a high-risk AI system’s real-world performance throughout its lifetime, feeding corrective action and incident reporting.

Serious Incident (EU AI Act)

A serious incident is an AI system malfunction that directly or indirectly causes death or serious harm to health, serious and irreversible disruption of critical infrastructure, breach of fundamental-rights obligations, or serious damage to property or the environment — triggering provider reporting duties.

Conformity Assessment (EU AI Act)

Conformity assessment is the process of demonstrating that a high-risk AI system meets the AI Act’s requirements before market placement — by internal control or via a notified body — ending in an EU declaration of conformity and CE marking.

Social Scoring (Prohibited AI Practice)

Social scoring — evaluating people over time based on social behaviour or personal characteristics, leading to detrimental treatment in unrelated contexts or disproportionate to the behaviour — is banned by AI Act Article 5 since 2 February 2025.

Biometric Categorisation

Biometric categorisation assigns people to categories based on their biometric data. Inferring race, political opinions, union membership, religion, sex life or sexual orientation is prohibited since 2 February 2025; other uses are high-risk.

Emotion Recognition System

An emotion recognition system identifies or infers emotions or intentions from biometric data. The EU AI Act bans it in workplaces and education (since 2 February 2025) and classifies remaining uses as high-risk with notification duties.