Unlocking AI success: your five-step guide to compliance
Does your organisation use AI systems or models? Have you assessed their level of risk with regulatory standards?
With our quick, five-minute assessment guide, you’ll gain a clear understanding of the essential requirements for safely and responsibly using AI in your business.
Overview
The EU Artificial Intelligence Act (AI Act) marks a major advancement in AI regulation, setting clear standards for responsible and safe AI use across the EU.
The Act introduces a risk-based approach, applying varying levels of requirements to AI systems and general-purpose AI (GPAI) models according to the risks they pose to health, safety, and fundamental rights.
Implementation of the AI Act will roll out in stages, beginning on August 1, 2024.
For other AI systems that were placed on the market or put into operation before the start of applicability, the AI Act will only apply where significant changes are made.
The AI Act will also apply to entities outside the EU where the output by the AI system is used in the EU, or when the provider places an AI system on the EU market.
The EU Artificial Intelligence Act (AI Act) will not automatically apply in the United Kingdom. Since Brexit, the UK is no longer bound by new EU laws, including the AI Act. However, the UK is actively developing its own AI regulatory framework, and it’s possible that elements of the EU’s approach may influence UK policy.
Implications
Non-compliance with the EU AI Act could lead to significant legal, financial, and reputational risks for businesses, making it essential for companies to understand and align with these regulations to avoid penalties and ensure market access in the EU. Including:
Non-compliance with prohibited Al system rules
Up to
or 7% of global annual turnover – whichever is higher
Non-compliance with other obligations of the Al Act
Up to
or 3% of global annual turnover – whichever is higher
Supplying incorrect, incomplete or misleading information to regulators
Up to
or 1% of global annual turnover – whichever is higher
Non-compliance with prohibited Al system rules
Up to
or 7% of global annual turnover – whichever is higher
Non-compliance with other obligations of the Al Act
Up to
or 3% of global annual turnover – whichever is higher
Supplying incorrect, incomplete or misleading information to regulators
Up to
or 1% of global annual turnover – whichever is higher
Timeline
From 2 August 2025
- Obligations relating to GPAI models.
- Notification procedure, EU governance and appointment of national regulators.
From 2 August 2026
- Obligations relating to high-risk AI systems under Annex III
- All other rules unless otherwise specified.
From 2 August 2027
- Obligations relating to high-risk AI systems that are products or safety components of products covered by legislation in Annex 1.
- Obligations for GPAI models placed on the market before 2 August 2025.
From 2 August 2030
- Duties for high-risk AI systems that are used by certain public authorities and were put into circulation before 2 August 2026.
From 31 December 2030
- Obligations relating to AI systems in European information systems in the areas of freedom, justice and security placed on the market or used before 2 August 2027.
- The AI Act will also apply to entities outside the EU where the output by the AI system is used in the EU, or when the provider places an AI system on the EU market.
- Fines differ depending on violations but may reach up to EUR 35 million or 7% of a company’s annual turnover, whichever is higher.
- The AI Act will also apply to entities outside the EU where the output by the AI system is used in the EU, or when the provider places an AI system on the EU market.
- Fines differ depending on violations but may reach up to EUR 35 million or 7% of a company’s annual turnover, whichever is higher.
We recommend the following five steps to help you achieve compliance with the AI Act and other EU digital regulation:
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