What is the EU AI Act, and why does it matter?

The EU's AI Act is a new law for regulating the production and usage of artificial intelligence (AI). It applies to any AI system operating or produced in the EU. Legally binding requirements include AI literacy programs, risk management and governance measures, and technical implementation criteria, depending on the type of AI systems your company is using.

For end-users, the AI Act is intended to maintain the benefits made possible with AI innovation while protecting our welfare and rights.

For businesses developing or deploying AI, there are phased in organizational and technical requirements to be met depending on what sort of AI your company is providing or deploying.

Non-compliance with the AI Act can result in fines of up to 7% of your business's annual global revenue or 35 million EUR, whichever is higher.

Want an overview of the AI Act? Check out our When does the EU AI Act come into force, and what does this mean for your business? - getting started guide to what you have to do when.

Up next from mkdev: I use ChatGPT for work. Does the AI Act apply to my company?

We are covering the entire scope of the AI Act in a series of articles and training sessions, and can make sure your AI systems are compliant and future-proof. Book a call with our Head of AI today to get a tailored compliance assessment and stay ahead of the AI Act. Schedule a Call

Dr. Paul Larsen, the Head of AI + Data at mkdev, is a data scientist with more than 10 years of experience in large corporates (Allianz Insurance, Deutsche Bank) and startups (Translucent). He is the creator of trainings for industry and academia on risk management and AI, and has worked directly with national regulators.

Read next:

• When does the EU AI Act come into force, and what does this mean for your business?