AI Act: Europe sets the rules for artificial intelligence

It applies to a wide range of entities, including providers, importers, distributors and manufacturers of AI products, as well as entities deploying AI systems. The Regulation also has extraterritorial effect, meaning that it also applies to non-EU entities when their AI products or services enter the European market or affect EU citizens.

The Regulation divides AI systems into several categories according to the level of risk. The most relevant in terms of AI regulation are the so-called prohibited systems with an unacceptable level of risk (AI tools that threaten citizens’ rights, such as emotion recognition in the workplace or blanket biometric categorisation) and high-risk systems, which, unlike the former, are not prohibited but are subject to strict regulation. High-risk systems include AI used in areas such as credit assessment, scoring or insurance. These systems are subject to a number of obligations, including the implementation of a risk management system in relation to AI systems, ensuring transparency through compliance with the information obligation or ensuring human oversight.

Although the AI Act is not yet applicable in its entirety, as of 2 February 2025, AI adopters, i.e. a wide range of companies implementing AI systems as part of their operations, are required to ensure AI literacy of their employees or workers. If you use AI systems within your business, you need to implement this new European regulation