Aiconomy

AI Act (EU)

The European Union's landmark comprehensive AI regulation that establishes a risk-based framework for governing AI systems, with requirements ranging from transparency to outright bans on certain uses.

The AI Act entered into force on August 1, 2024, with full enforcement beginning in August 2026. It classifies AI systems into four risk tiers: unacceptable (banned practices like social scoring), high-risk (subject to strict requirements), limited risk (transparency obligations), and minimal risk (no regulation). Fines range up to 35 million euros or 7% of global revenue. The Act has influenced AI regulation worldwide, with countries studying its approach. Foundation model providers must comply with transparency requirements including energy consumption disclosure and copyright-related training data documentation.

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