EU enforces groundbreaking AI regulations: New rules take effect 2nd February 2025

In August 2024, the European Union enacted the Artificial Intelligence Act (AI Act), establishing the world’s first comprehensive legal framework for artificial intelligence. This legislation aims to ensure that AI systems developed and deployed within the EU adhere to fundamental rights, safety, and ethical standards.

The AI Act introduces a risk-based classification system for AI applications:
• Unacceptable Risk: AI systems that pose a significant threat to fundamental rights are prohibited. This includes applications designed for behavioral manipulation, social scoring by public authorities, and real-time remote biometric identification in public spaces without proper authorization.
• High Risk: AI applications in sectors such as healthcare, education, recruitment, critical infrastructure, law enforcement, and justice are subject to stringent requirements. These include rigorous testing, documentation, and human oversight to ensure safety and compliance.
• Limited Risk: AI systems with limited risk are subject to transparency obligations, ensuring users are informed that they are interacting with an AI system and allowing them to make informed choices. 
• Minimal Risk: This category includes most AI applications, such as spam filters or AI used in video games, which are not subject to additional legal requirements.

Starting February 2, 2025, the AI Act’s prohibitions on certain high-risk AI systems will come into effect. Companies are required to eliminate AI systems that violate European principles, including those that compromise privacy, health, or citizen safety. Non-compliance could result in fines up to EUR 35 million or 7% of annual turnover.

The AI Act also establishes governance structures to oversee its implementation. The European Artificial Intelligence Board will advise and assist the European Commission and Member States to facilitate consistent and effective application of the AI Act. Additionally, the AI Office will coordinate the implementation of the AI Act across Member States and oversee the compliance of general-purpose AI providers.

While full enforcement of the AI Act is scheduled for August 2026, these initial provisions mark a significant step in the EU’s commitment to fostering trustworthy AI. By implementing these regulations, the EU aims to balance innovation with the protection of fundamental rights, setting a global standard for AI governance.