EU's AI Act Enters Enforcement Phase
The European Union’s landmark AI Act is now moving into its enforcement phase ahead of an August 2026 deadline. The law creates a risk-based framework, banning 'unacceptable risk' systems like social scoring and imposing strict transparency and oversight rules on 'high-risk' applications in areas like hiring and law enforcement.
A new European AI Office has been established within the European Commission to oversee enforcement. Based in Brussels, this central body is projected to have a staff of over 140 and holds direct enforcement powers, particularly for general-purpose AI models. This office will work in tandem with the European Artificial Intelligence Board, which is composed of representatives from each member state. The Board's primary role is to advise on and ensure the consistent application of the Act across the Union. The enforcement timeline is staggered. The prohibition on unacceptable-risk AI became applicable in February 2025. This will be followed by rules for general-purpose AI models in August 2025, ahead of the main compliance date for high-risk systems in August 2026. Penalties for non-compliance are substantial and exceed those of GDPR in some cases. Breaching the ban on prohibited AI practices can result in fines of up to €35 million or 7% of a company's total worldwide annual turnover, whichever is higher. Other violations also carry significant financial risk. Non-compliance with the obligations for high-risk or other AI systems can lead to fines of up to €15 million or 3% of global turnover. Supplying incorrect or misleading information to authorities is subject to penalties of up to €7.5
