The European Artificial Intelligence Act (AI Act), the world’s first comprehensive regulation on artificial intelligence, entered into force on August 1st in the EU.
The AI Act aims to ensure that AI developed and used in the EU is trustworthy, with safeguards to protect people’s fundamental rights. The legislation is intended to establish a harmonized internal market for AI in the EU, encouraging the uptake of this technology and creating a supportive environment for innovation and investment.
Member States have until 2 August 2025 to designate national competent authorities, who will oversee the application of the rules for Artificial Intelligence systems and carry out market surveillance activities. The Commission’s AI Office will be the key implementation body for the EU-level AI Act and the enforcer of the rules for general-purpose AI models.
Three advisory bodies will support the implementation of the rules. The European Artificial Intelligence Board will ensure a uniform application of the AI Act across EU Member States and act as the main body for cooperation between the Commission and the Member States. A scientific panel of independent experts will offer technical advice and input on enforcement. In particular, this panel can issue alerts to the AI Office about risks associated with general-purpose AI models. The AI Office can also receive guidance from an advisory forum, composed of a diverse set of stakeholders.
Companies not complying with the rules will be fined. Fines could go up to 7% of the global annual turnover for violations of banned AI applications, up to 3% for breaches of other obligations, and up to 1.5% for supplying incorrect information.
