The EU AI Act’s First Compliance Deadline is Here—What It Means for AI Regulation

As of February 2, the European Union has begun enforcing the first compliance deadline under the AI Act, granting regulators the power to ban AI systems deemed an "unacceptable risk."

Key Takeaways:

1️  AI Risk Categories:
The Act classifies AI into four risk levels:

• Minimal & Limited Risk – Little to no regulation.
• High-Risk AI – Strict oversight required.
• Unacceptable Risk AI – Banned entirely.

2️ Banned AI Applications Include:
❌ Social scoring
❌ Subliminal manipulation
❌ Crime prediction based on appearance
❌ Real-time biometric surveillance
❌ Emotion inference in workplaces & schools

Companies violating these bans face fines of up to €35 million or 7% of annual revenue.

3️ Who’s Complying?

• Over 100 companies, including Amazon & Google, voluntarily pledged compliance via the EU AI Pact last year.
• Meta, Apple, & Mistral did not sign the pledge.

4️ Are There Exceptions?

• Biometric data collection is allowed for law enforcement in specific cases with authorization.
• Emotion inference is permitted for medical & safety applications.

What’s Next?

The European Commission will release further guidelines in early 2025, as companies work through compliance complexities alongside GDPR & NIS2 regulations.

With strict penalties and broad implications, the EU AI Act is setting the global standard for AI governance. Will other nations follow?