#139. ⚠️ EU AI Act enforcement penalties in effect from Feb 2

This is educational material and does not constitute legal advice nor is any attorney/client relationship created with this article, hence you should contact and engage an attorney if you have any legal questions. No warranties, express or implied, are made with respect to its accuracy. Information contained herein, or information relied upon, is subject to change without notice.

Enforcement penalties under Article 5 of the EU AI Act (“EUAIA”) go into effect on February 2, 2025. This significant step aims to ensure AI technologies are developed and used in a manner that is safe, transparent, and respects fundamental rights.

Prohibited AI practices

From February 2, 2025, certain AI applications will be outright banned due to their unacceptable risk levels. These include manipulative AI systems, social scoring, and emotion recognition systems in certain contexts like workplaces and schools. Penalties for non-compliance are severe, reaching up to €35M or 7% of the global annual turnover for the entity, whichever is higher.

AI Literacy and training required

The EUAIA also mandates “AI literacy”. Per Article 4 of the EUAIA, providers and deployers of AI systems must ensure their users are equipped with a sufficient understanding of AI. This requirement aims to foster responsible use, although the direct penalties for failing to meet this standard are not explicitly detailed in the initial phase.

Enforcement and compliance

Companies operating within or targeting the EU market must prepare for compliance, as the Act applies to both providers and users of AI systems. This includes ensuring that AI systems do not infringe on the prohibitions set forth by the EUAIA.

For a substantive deep dive into the EUAIA, you can learn more here.

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