EU AI Act: key concepts for organisations
The EU Artificial Intelligence Act establishes a harmonised regulatory framework for AI systems placed on the market or put into service within the European Union. It takes a risk-based approach, with different requirements depending on the level of risk an AI system poses.
Risk categories
| Category | Scope | Key requirements |
|---|---|---|
| Prohibited | Social scoring by public authorities, subliminal manipulation, untargeted facial recognition scraping | These practices are not permitted under any circumstances |
| High-risk | AI used in employment decisions, credit assessment, education, critical infrastructure, biometrics | Risk management system, technical documentation, data governance, human oversight, conformity assessment |
| Limited risk | Chatbots, AI-generated content, emotion recognition systems | Transparency and disclosure obligations |
| Minimal risk | Spam filters, AI-enhanced search, basic recommendation systems | AI literacy measures (Article 4) |
Application timeline
| Date | Provisions taking effect |
|---|---|
| 2 February 2025 | Prohibited AI practices (Art. 5) and AI literacy obligation (Art. 4) |
| 2 August 2025 | General-purpose AI model obligations (Arts. 53–55) |
| 2 August 2026 | High-risk AI system obligations (Arts. 9–17, 26) and transparency requirements (Art. 50) |
| 2 August 2027 | Full application of all remaining provisions |
Who needs to comply
Providers — organisations that develop or commission AI systems and place them on the EU market — carry the most extensive obligations, including technical documentation, risk management, and conformity assessment.
Deployers — organisations that use AI systems in their professional activities — must ensure human oversight, maintain logs, and comply with transparency requirements. Any company using AI-powered tools (recruitment software, chatbots, credit scoring) in the EU is likely a deployer.
The regulation applies regardless of where the organisation is established, provided the AI system's output is used within the European Union.
Penalties
Non-compliance may result in administrative fines of up to €35 million or 7% of worldwide annual turnover for prohibited practice violations, and up to €15 million or 3% of turnover for other infringements. Proportionally reduced penalties apply to SMEs and startups.
Assessing your obligations
Determining whether your AI systems fall under high-risk classification requires examining their intended purpose against the categories defined in Article 6 and Annex III of the regulation. Our assessment tool guides you through this process with structured questions and provides a clear classification with supporting legal references.