FAQs SERIES: Key Insights into the EU AI Act

1. What is the Artificial Intelligence (AI) Act?

The AI Act is a regulation proposed by the European Commission to lay down harmonised rules for artificial intelligence across the EU. It aims to promote the development of AI while ensuring safety, transparency, and accountability, especially for high-risk AI applications that might affect fundamental rights and safety.

2. When will the AI Act come into force?

The AI Act entered into force on 1 August 2024. However, most provisions will become directly applicable from 2 August 2026, with some provisions applying earlier, such as the rules on prohibited AI practices (2 February 2025) and governance (2 August 2025).

3. What are the key objectives of the AI Act?

The primary objectives of the AI Act are to:

Ensure AI is used safely across all sectors
Provide a legal framework for AI that balances innovation with fundamental rights protection
Establish rules for transparency, accountability and fairness in AI systems
Regulate high-risk AI systems with stricter requirements

4. What types of AI does the AI Act regulate?

The AI Act categorises AI systems into three risk categories:

Unacceptable risk: AI systems that pose a threat to safety and fundamental rights (e.g., AI used for social scoring)
High risk: AI systems that can affect individuals' safety or rights, such as in critical infrastructure or health
Low risk: AI systems with minimal impact, which are subject to lighter regulatory requirements

5. Which entities are impacted by the AI Act?

The AI Act applies to:

AI providers: Those who develop or place AI systems on the market
Users of AI: Businesses and public sector organisations that use AI systems
Authorities: Regulatory bodies that will oversee AI implementation and compliance

6. What are the compliance obligations for high-risk AI systems?

Providers of high-risk AI systems must:

Conduct risk assessments and implement risk mitigation measures
Ensure transparency by providing clear information about AI systems to users
Guarantee human oversight and allow for human intervention when needed
Ensure systems are robust, secure and able to handle malfunctions safely
Maintain adequate documentation for compliance and traceability

7. How will AI systems be monitored and enforced?

The AI Act establishes a system for monitoring and enforcement, including:

National supervisory authorities for compliance
A European Artificial Intelligence Board to facilitate cooperation and the sharing of best practices
Penalties for non-compliance, including fines for entities failing to adhere to AI requirements

8. Does the AI Act include provisions on using AI in public administration?

Yes, the AI Act imposes specific rules regarding the use of AI in public administration, particularly in relation to high-risk AI systems such as those used for law enforcement, border control and critical infrastructure.

9. What are the penalties for non-compliance with the AI Act?

Non-compliance with the AI Act can result in substantial fines, which may be up to €30 million or 6% of global turnover, depending on the severity of the violation.

10. How will the AI Act be enforced?

National regulatory authorities will oversee the enforcement of the AI Act, with cooperation from the European Commission and other EU bodies. These authorities will monitor compliance, investigate complaints and impose penalties when necessary.

11. What role do the EU member states play in the AI Act?

Member states are required to implement the AI Act within their national legal frameworks. They will also cooperate with the European Commission and other member states through the European Artificial Intelligence Board to ensure consistent application across the EU.

12. Will the AI Act affect non-EU entities?

Yes, the AI Act applies to non-EU companies that provide AI systems or services to the EU market. These companies will need to comply with the Act's requirements if they intend to operate within the EU.

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