EU AI Act Enforcement Begins — Companies Face Up to 7% Revenue Penalties

The European Union's AI Act has entered its enforcement phase. Non-compliance can result in fines of up to 7% of global annual revenue — or €35 million, whichever is higher.

What's now required:

• AI systems classified as "unacceptable risk" are banned (social scoring, real-time biometric surveillance)
• High-risk AI must undergo conformity assessments
• Generative AI providers must disclose AI-generated content
• Training data documentation required

Who's affected: Any company deploying AI in the EU market, regardless of headquarters location.

The EU AI Act is the template for global regulation. Similar legislation is advancing in Canada, Brazil, and South Korea.