⚠️ EU AI Act enforcement penalties go into effect from Sunday, Feb 2, 2025

This is educational material and does not constitute legal advice nor is any attorney/client relationship created with this article, hence you should contact and engage an attorney if you have any legal questions. No warranties, express or implied, are made with respect to its accuracy. Information contained herein, or information relied upon, is subject to change without notice.


Enforcement penalties under Article 5 of the EU AI Act (“EUAIA”) will go into effect on February 2, 2025. This significant step aims to ensure AI technologies are developed and used in a manner that is safe, transparent, and respects fundamental rights. For a deep dive into the EUAIA, you can read more here.

Prohibited AI Practices

From February 2, 2025, certain AI applications will be outright banned due to their unacceptable risk levels. These include manipulative AI systems, social scoring, and emotion recognition systems in certain contexts like workplaces and schools. The penalties for non-compliance could be severe, reaching up to €35 million or 7% of the global annual turnover for the entity, whichever is higher.

AI Literacy

A notable aspect of the EUAIA is the mandate for “AI literacy”. Per Article 4 of the EUAIA, providers and deployers of AI systems must ensure their users are equipped with a sufficient understanding of AI. This requirement aims to foster responsible use, although the direct penalties for failing to meet this standard are not explicitly detailed in the initial phase.

Enforcement and Compliance

Companies operating within or targeting the EU market must prepare for compliance, as the Act applies to both providers and users of AI systems. This includes ensuring that AI systems do not infringe on the prohibitions set forth by the EUAIA.

For examples of prohibited AI use,

For a substantive deep dive into the EUAIA, you can learn more here.

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