Navigate the EU AI Act requirements for global companies. Learn compliance strategies, risk management, and implementation guidelines for AI regulations.
## Executive Opening
On 1 August 2024, the EU’s Artificial Intelligence Act (EU AI Act) entered into force — the world’s first comprehensive AI regulation [European Commission↗](https://commission.europa.eu/news-and-media/news/ai-act-enters-force-2024-08-01_en). This is not guidance. It is law. With obligations phasing in through 2025–2027, global companies must act fast or risk fines as high as €35M or 7% of worldwide turnover.
If your organization builds, sells, or even integrates AI systems that touch the EU market, this law applies to you.
## What Is the EU AI Act?
The regulation (EU 2024/1689) establishes a risk-based framework for AI systems:
- Minimal risk → Most everyday AI (spam filters, chatbots)
- Limited risk → Systems requiring transparency (e.g., deepfakes)
- High risk → AI in hiring, healthcare, finance, critical infrastructure
- Unacceptable risk → AI for manipulation, surveillance, social scoring (banned outright)
High-risk and general-purpose AI (GPAI) providers must implement documentation, oversight, bias testing, and security safeguards before deployment [Wikipedia↗](https://en.wikipedia.org/wiki/Artificial_Intelligence_Act).
## List Block — Key Dates & Deadlines
**Date** **Milestone**
**1 Aug 2024** AI Act enters into force [European Commission↗](https://commission.europa.eu/news-and-media/news/ai-act-enters-force-2024-08-01_en)
**2 Feb 2025** Ban on unacceptable-risk AI systems [ArtificialIntelligenceAct.eu↗](https://artificialintelligenceact.eu/implementation-timeline/)
**2 Aug 2025** GPAI (general-purpose AI) compliance obligations begin [BSR.org↗](https://www.bsr.org/en/blog/the-eu-ai-act-where-do-we-stand-in-2025)
**2026–2027** Full obligations apply to high-risk systems and providers [European AI Office↗](https://en.wikipedia.org/wiki/European_Artificial_Intelligence_Office)
## Penalties Explained
**Prohibited AI systems:** up to €35M or 7% turnover [Deloitte↗](https://www.deloitte.com/us/en/services/consulting/articles/eu-ai-act-ai-governance.html)
**Non-compliance with obligations:** up to €15M or 3% turnover
**Supplying misleading info:** up to €7.5M or 1% turnover
**GPAI provider failures (docs/transparency):** up to €15M or 3% turnover [ArtificialIntelligenceAct.eu↗](https://artificialintelligenceact.eu/article/101/)
**Expert Note**
The AI Act is the GDPR of algorithms — the global benchmark that forces companies to embed trust into technology.
## Final Insight
The EU AI Act is more than compliance — it’s a **trust signal**. Early movers will not only avoid fines but also win customer confidence and set the benchmark for responsible AI.
## Authorship & Brand Note
*This report was prepared by **Tymos LLC**. We specialize in helping businesses align **innovation with governance** — turning regulation into a competitive advantage. If your company needs clarity on the EU AI Act or wants to build AI strategies that scale without risk, our team is ready to partner with you.*