Question 1

What is the EU AI Act?

Accepted Answer

The EU AI Act represents the world's first comprehensive legal framework for artificial intelligence, establishing clear rules and obligations for AI development, deployment, and use across the European Union. This groundbreaking regulation introduces a risk-based classification system that categorizes AI systems into four levels: prohibited, high-risk, limited-risk, and minimal-risk. High-risk AI systems, which include those used in critical infrastructure, education, employment, law enforcement, and essential services, face the most stringent compliance requirements including mandatory conformity assessments, technical documentation, and human oversight measures. The Act also bans certain AI practices that pose unacceptable risks to fundamental rights and safety, such as social scoring systems and manipulative AI applications. This regulation aims to balance innovation with safety, ensuring AI systems are trustworthy and aligned with European values.

Question 2

Is GDPR still required?

Accepted Answer

Absolutely yes - GDPR remains fully in effect and continues to apply to all AI systems that process personal data, regardless of the EU AI Act's implementation. The two regulations work in parallel and complement each other: GDPR focuses specifically on personal data protection and privacy rights, while the AI Act addresses broader AI governance and safety concerns. When your AI system processes personal information, you must comply with both regulations simultaneously. This means maintaining GDPR compliance for data processing activities while also meeting AI Act requirements for system transparency, risk management, and human oversight. The AI Act actually references GDPR in several provisions, recognizing the importance of data protection in AI systems. Organizations must conduct thorough assessments to ensure their AI implementations satisfy both regulatory frameworks.

Question 3

What happens if I don't comply?

Accepted Answer

Non-compliance with either regulation can result in severe financial and operational consequences that could significantly impact your business. EU AI Act violations can lead to administrative fines of up to €35 million or 7% of your global annual turnover, whichever is higher. GDPR violations can result in fines up to €20 million or 4% of global annual turnover. Beyond financial penalties, both regulations empower supervisory authorities to take enforcement actions including temporary or permanent bans on AI system deployment, mandatory system modifications, and public disclosure of violations. Non-compliance can also result in business disruption, loss of customer trust, and potential legal liability. Additionally, the AI Act includes specific provisions for AI systems already on the market, with authorities having the power to withdraw non-compliant systems and require immediate corrective actions. Early compliance is crucial to avoid these risks.

Question 4

Does this apply to startups?

Accepted Answer

Yes, both the EU AI Act and GDPR apply to startups regardless of their size, funding stage, or market presence. These regulations are designed to be technology-neutral and business-size-agnostic, meaning they apply to any organization developing, deploying, or using AI systems that affect EU citizens or operate in the EU market. Even small startups with limited resources must comply, though the regulations do provide some flexibility in implementation approaches. The key consideration is whether your AI system falls within the scope of these regulations, not your company's size or maturity. However, startups may face unique challenges in compliance due to limited legal resources and compliance expertise. This is why early planning and systematic compliance approaches are essential - it's much easier and more cost-effective to build compliance into your AI development process from the beginning rather than retrofitting existing systems later.

Aspect	EU AI Act	GDPR
Scope	AI systems and their development/deployment	Personal data processing
Risk Classification	Prohibited, High-risk, Limited-risk, Minimal-risk	Based on processing activities and data sensitivity
Maximum Fines	€35M or 7% of global annual turnover	€20M or 4% of global annual turnover
Compliance Timeline	Phased implementation (2024-2027)	Immediate (since 2018)
Key Requirements	Technical documentation, conformity assessment, transparency	Data protection by design, DPIAs, data subject rights

Compliance Advisor AI

EU AI Act & GDPR Compliance Made Simple

What is the EU AI Act?

When it applies

High-level risks

Why GDPR Still Applies

Key GDPR Requirements for AI:

GDPR + EU AI Act Overlap

How AICompliance Advisor Helps

EU AI Act vs GDPR: Key Differences

Frequently Asked Questions

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