The European Union's AI Act has reached its first major enforcement milestone, with companies now required to demonstrate compliance for high-risk AI systems. The regulation affects any business deploying AI in hiring, credit scoring, law enforcement, and critical infrastructure within the EU.

Compliance requirements include mandatory risk assessments, transparency obligations, and human oversight mechanisms. Companies found in violation face fines of up to 7% of global annual revenue — significantly higher than GDPR penalties.

Legal experts note that the extraterritorial reach of the regulation means non-EU companies serving European customers must also comply. Several major tech companies have already begun publishing their compliance documentation.

What This Means for Your Business

If you operate in or sell to the EU, this is no longer theoretical. Audit your AI systems against the high-risk categories defined in the Act. Priority actions include documenting your AI decision-making processes, implementing human review mechanisms, and ensuring your data practices meet the transparency requirements. Engage legal counsel with AI regulation expertise before the next enforcement deadline.