Penalties and Enforcement under the EU AI Act
The EU AI Act introduces strict fines to ensure responsible AI use. For businesses that fail to comply, the consequences can be severe.
The EU AI Act introduces strict fines to ensure responsible AI use. For businesses that fail to comply, the consequences can be severe.
The penalty structure is designed to be proportionate to the violation and the size of the business, with the most serious violations potentially resulting in fines that could significantly impact a company's operations.
Up to €35 million or 7% of global revenue
Most serious violations
- • Prohibited AI practices
- • Non-compliance with high-risk AI requirements
- • Serious breaches of data governance
Up to €15 million or 3% of global revenue
Failure to meet obligations
- • Non-compliance with transparency requirements
- • Failure to register high-risk AI systems
- • Inadequate risk management
Up to €7.5 million or 1% of global revenue
Providing false information
- • Misleading information in registration
- • False compliance declarations
- • Inaccurate technical documentation
National Authorities
National authorities in each member state enforce the law
Inspections and Monitoring
Ongoing monitoring and regular inspections of AI systems
Temporary Bans
Temporary bans on AI system use are possible
Enforcement Process
- 1. Investigation of potential violations
- 2. Formal notice and opportunity to respond
- 3. Administrative proceedings
- 4. Decision and imposition of penalties
- 5. Right to appeal
Conduct regular internal audits
Implement systematic reviews of your AI systems and compliance procedures to identify and address potential issues before they become violations.
Use compliance monitoring tools
Leverage automated tools and professional services to continuously monitor your AI systems and ensure ongoing compliance with regulatory requirements.
Train employees on AI Act requirements
Ensure all team members understand their responsibilities under the AI Act and are equipped to implement compliance measures effectively.
What are the penalties under the EU AI Act?
Ranging up to €35 million or 7% of revenue for the most serious violations, with lower penalties for less severe breaches. The exact amount depends on the nature of the violation and the size of the business.
Who enforces the AI Act in Europe?
National regulators supported by the European Commission. Each EU member state designates competent authorities to oversee AI Act compliance within their jurisdiction.
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