A government policy analyst is comparing voluntary (US NIST AI RMF) versus mandatory (EU AI Act) AI governance frameworks. What is the most important practical difference for organizations operating in both jurisdictions?

• A.The EU AI Act applies only to EU-based companies; US companies with EU customers are fully exempt
• B.The two frameworks are essentially equivalent in requirements; the only difference is geographic applicability
• C.NIST AI RMF is mandatory for US federal contractors, making it as legally binding as the EU AI Act for most organizations
• D.The EU AI Act imposes legally binding compliance requirements with specific obligations, timelines, and financial penalties - non-compliance is not an option for in-scope systems; NIST AI RMF provides guidance that organizations can choose to adopt and adapt without legal mandate, though financial regulators may make it de facto mandatory through supervisory expectations