EU officially enforces landmark AI legislation

The European Union officially began enforcing its landmark artificial intelligence legislation on Sunday. This pioneering AI regulatory framework, known as the EU AI Act, was initially enacted in August 2024.

The enforcement introduces stringent regulations and substantial fines for non-compliance.

First rules of the EU’s Artificial Intelligence Act #AIAct are now applicable

To help ensure compliance, the @EU_Commission will publish guidelines on prohibited AI practices posing unacceptable risks to citizens’ safety & fundamental rights.
https://t.co/aDt7DKcWHY pic.twitter.com/PHDBKO5dPT

— EU at UN-NY (@EUatUN) February 3, 2025

The deadline for enforcing rules to guarantee that employees are sufficiently tech-savvy and for banning specific AI systems formally expired on Sunday.

This implies that businesses must abide by the limitations and risk fines if they don’t.

Certain AI applications that the AI Act deems to pose an “unacceptable risk” to citizens are prohibited.

These include “manipulative” AI tools, social score systems, and real-time facial recognition and other biometric identification methods that classify individuals based on their sexual orientation, sex life, race, and other characteristics.

From now on, AI using deceptive techniques or exploiting vulnerabilities will be banned under the AI Act. The world’s first binding horizontal AI regulation is entering a crucial implementation phase of implementation @EP_SingleMarket @EP_Justice
https://t.co/nQvfVmRzDx pic.twitter.com/M1HwdqNEfa

— European Parliamentary Research Service (@EP_EPRS) February 2, 2025

Businesses that violate the EU AI Act risk fines of up to 35 million euros ($35.8 million) or 7% of their yearly worldwide sales, whichever is larger.

The violation and the size of the punished company will determine the severity of the sanctions.

That exceeds the maximum penalties allowed by Europe’s stringent digital privacy law, the GDPR.

Businesses that violate the GDPR risk fines of up to 20 million euros, or 4% of their yearly worldwide sales.

CNBC