EU grants AI‑enforcement powers

Effective 1 September, the European Union’s AI Act gives regulators the authority to levy fines of up to 6 % of global turnover on companies that violate the bloc’s AI regulations.

The law classifies AI systems into risk categories, requiring high‑risk applications to undergo conformity assessments, provide clear documentation and ensure human oversight.

Critics argue the rules could stifle innovation, while industry groups say the clarity will help them plan compliance.

The EU hopes the legislation will set a global standard for responsible AI development and protect citizens from harmful algorithmic outcomes.