The EU's Artificial Intelligence (AI) Act

The AI Act adopts a risk-based approach and categorizes AI systems based on the inherent risk posed by their application and usage;

These risk categories are: Unacceptable-risk, High-risk, Transparency risk, Minimal to no risk;

Each risk level has different corresponding regulatory obligations, meaning organizations' requirements and responsibilities under the AI Act will depend on their AI system's risk level;

AI systems that present unacceptable risk were banned from February 2025;

The AI Act generally prohibits the use of real-time biometric identification systems such as facial recognition in public spaces, apart from a few exceptions for matters of national security or serious crime protection;

All AI systems deemed as "high-risk" must be designed to allow for human oversight and will be subject to conformity assessments before being placed on the market;

National authorities within EU member states, in tandem with the European Artificial Intelligence Board (EAIB), oversee and enforce the AI Act;

Non-compliance with the AI Act's provisions can result in heavy fines that can reach up to €35 million or 7% of global annual turnover for companies that violate the law, whichever one is higher.