Explainer
What Is the EU AI Act?
Edited by Vikram Iyer
Reviewed 2026-06-01
The EU AI Act is the European Union's comprehensive legal framework for artificial intelligence. Adopted in 2024, it classifies AI systems by risk level and imposes obligations ranging from transparency requirements to outright bans on unacceptable-risk applications.
Risk-based classification
The Act divides AI systems into four tiers: unacceptable risk (banned), high risk (strict requirements), limited risk (transparency obligations), and minimal risk (voluntary codes). High-risk categories include biometric identification, critical infrastructure, employment decisions, and credit scoring.
Who it affects
The Act applies to providers placing AI systems on the EU market, deployers using AI in the EU, and importers and distributors. Non-EU companies serving EU customers must comply — making it effectively a global standard for many enterprise AI products.
Enterprise implications
Enterprise buyers must conduct conformity assessments for high-risk systems, maintain technical documentation, implement human oversight, and register systems in an EU database. Foundation model providers face additional transparency and safety requirements.
Timeline
Prohibitions on unacceptable-risk AI took effect in early 2025. High-risk system requirements phase in through 2026–2027. General-purpose AI model obligations apply from August 2025.
Sources
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Frequently Asked Questions
When does the EU AI Act take full effect?+
Core prohibitions apply from 2025; high-risk requirements phase in through 2027 depending on system classification.
Does the EU AI Act apply to US companies?+
Yes, if they place AI systems on the EU market or deploy AI affecting people in the EU.
What AI is banned under the Act?+
Social scoring by governments, real-time biometric identification in public spaces (with exceptions), and manipulative AI exploiting vulnerabilities.
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