EU AI Act Overview
The EU AI Act classifies AI systems by risk level: Unacceptable (banned), High-Risk (strict requirements), Limited Risk (transparency obligations), and Minimal Risk (no requirements). Most enterprise AI usage falls under Limited or High Risk categories.
Key Requirements for Enterprises
Enterprises must: document AI systems in use, implement risk management for high-risk applications, ensure human oversight, maintain data governance, provide transparency to users, and implement accuracy and robustness measures.
Penalties and Enforcement
Fines reach up to €35 million or 7% of global annual turnover for prohibited AI practices, €15 million or 3% for high-risk AI violations, and €7.5 million or 1.5% for providing incorrect information.
Compliance Roadmap
Step 1: Inventory all AI systems. Step 2: Classify by risk category. Step 3: Implement required controls for each category. Step 4: Document compliance evidence. Step 5: Establish ongoing monitoring. Platforms with built-in governance accelerate this process significantly.
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