Electronic Warfare and AI: The Battle for the Spectrum
A Legal Strategic Report for Foreign Investors in the Czech Republic
The electromagnetic spectrum has emerged as a critical domain where artificial intelligence now directs both commercial and defense operations, creating unprecedented opportunities and regulatory challenges for global actors.
Key takeaways
Supply Chain Obligations
It is no longer enough for your company to be secure. If you supply AI software, EW components, or cloud services to a "critical entity" (e.g., a bank, hospital, energy distributor, or defense contractor), you become a critical part of their supply chain.
The Impact: Your clients will legally be required to audit your security. You must be able to demonstrate compliance with rigorous standards (ISO 27001, NÚKIB regulations). If you cannot, you will be dropped as a supplier.
Obligations and Draconian Penalties
The new Act introduces strict obligations:
- Incident Reporting: Significant cyber incidents must be reported to the National Cyber and Information Security Agency (NÚKIB) within 24 hours.
- Management Liability: Top management (CEOs, boards) can be held personally liable for failing to implement cybersecurity measures. They cannot delegate this responsibility to the IT department.
- Fines: The penalties are massive—up to CZK 250,000,000 (approx. EUR 10 million) or 2% of global turnover, whichever is higher.
ARROWS International conducts "NIS2 Gap Analyses" for foreign clients. We prepare the mandatory security documentation, assist in appointing a Cyber Security Manager, and represent clients during NÚKIB audits. We ensure that your contracts with sub-suppliers reflect these new security obligations, passing the liability down the chain where appropriate.
Key Takeaway: Cybersecurity is no longer an IT issue; it is a Board of Directors issue with personal liability attached.
Cybersecurity & NIS2
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Risks and penalties |
How ARROWS helps (consultation@arws.cz) |
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Non-Reporting of Incidents: Failing to report a breach within 24 hours. Penalty: Fine up to CZK 250,000,000; sanctions against management. |
Incident Response Plan: We draft legal response protocols ensuring you meet the 24-hour deadline without admitting undue liability. |
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Supply Chain Audit Failure: Losing a key client because you failed their security audit. Consequence: Loss of revenue; breach of contract. |
Compliance Readiness: We prepare you for audits, reviewing your policies and documentation to meet NIS2 standards. |
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Management Liability: Directors held personally responsible for a hack. Penalty: Suspension of managerial function; personal fines. |
Director Training: We provide legal training for boards on their cybersecurity duties. |
The convergence of Electronic Warfare and AI offers unprecedented business opportunities in the Czech Republic, a safe European harbour. However, the regulatory environment is a minefield of spectrum laws, export controls, and strict liability rules. What looks like a simple software update or a standard sales contract can hide existential legal risks.
Do not navigate this battlefield alone. ARROWS Law Firm, a leading Czech law firm based in Prague, European Union, handles these agendas daily. We combine local expertise with the reach of the ARROWS International network. We are insured for CZK 500 million, and we are ready to protect your interests. Contact us today at consultation@arws.cz.
Don't want to deal with this problem yourself? More than 2,000 clients trust ARROWS Law Firm, and we have been awarded Law Firm of the Year 2024. Take a look HERE at our references, and we will be honored to help you solve your problem. The inquiry is free of charge.
About the author
Disclaimer:
The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.