Imagine investing in an AI product only to have it banned overnight. Well, that’s no longer hypothetical. It has become a new reality for businesses that operate or sell to the European Union. With high penalties that may reach up to €35 million or 7% of worldwide turnover (EU AI Act, Article 99), the first law regulating artificial intelligence concerns even the confident ones.
If you build AI systems, launch generative AI tools, work with biometric data, or deploy models trained on datasets, this law is not optional. It’s mandatory. Let’s get straight to business and answer the main question: What do you need to know about EU AI regulations?
What Is the EU AI Act?
The EU AI Act, known as the Artificial Intelligence Act, Regulation (EU) 2024/1689, is the European Union’s landmark legislation. It controls how people develop, use, and apply artificial intelligence. You can think of it as the first legally binding AI framework, focusing on safety, transparency, accountability, and fundamental rights.
Furthermore, it breaks all AI systems into different risk levels, determines what’s acceptable, and manages compliance checks. Surely, this is not the only aspect that makes it unique:
- A risk-based structure: The European Union AI Act classifies systems as unacceptable, high-risk, those that are limited-risk, or minimal-risk.
- Application beyond EU borders: It targets companies that sell AI into the EU, regardless of their location.
- Establishment of the European AI Office: The organization basically oversees enforcement and model evaluations.
- Integration with existing EU digital laws: The framework complements the Digital Services Act and the General Data Protection Regulation (GDPR).
But what exactly does the EU AI law aim to achieve? I suggest that we examine key objectives that drive the Union’s approach to AI governance.
Objectives of the EU AI Act
You should know by now that the EU Artificial Intelligence Act helps regulate key rights, ensure product safety, and foster trust in AI systems. It balances between innovation and accountability, two things that work is impossible without. So, how about we discuss what the European AI Act is about in detail and examine key goals?
Promote Usage of Safe Artificial Intelligence
We can all agree that not every software is safe, which makes the first objective. The EU AI Act aims to promote trustworthy AI systems. In practice, they must train on high-quality datasets, work within set limits, and avoid risks to human health, rights, or democracy.
To bring safety to AI usage, EU AI laws, Article 1, introduce the following:
- Strict safety requirements: This applies to high-risk AI systems. For example, medical devices, critical infrastructure, and education tech.
- Mandatory risk management systems: These include adversarial testing and postmarket monitoring.
- Clear technical documentation: The goal is to have AI developers prove how their tools work and why they’re safe.
Protect the Fundamental Human Rights
This one needs no comments. The European AI Act bans AI that can violate privacy, dignity, equality, or freedom. But how does it work in practice? The regulation places a ban on some practices. For example, social scoring, using remote biometric identification in public spaces, or exploiting vulnerable individuals (EU AI Act, Article 5).
The EU law also includes fundamental rights impact assessments in the design of high-risk systems. This ensures they not only work but also respect the affected people. Here are the components of the assessment that deployers have to submit:
- A description of where and how your AI system will be used.
- A definition of the time period and frequency of use.
- The individuals or groups could be affected.
- Specific risks of harm to those people.
- Explanation of how human oversight is maintained.
- The response plan if the risks materialize.
Ensure Transparency and Human Oversight
Now that I have spoiled the importance of human oversight, we can discuss it in detail. The truth is, too many AI systems operate in the dark. There is no way for users to understand how exactly the decisions are made. The AI Act (EU) puts an end to it. It requires explanation and human oversight for high-risk AI tools. Here are the requirements, according to the EU AI Act, Article 50:
- Labeling of AI-powered content creation. Especially when it comes to deep fakes and generative AI.
- A notification that the user interacts with a machine-based system.
- Human intervention is required for critical cases like credit scoring or medical diagnosis.
Create a Single European AI Governance Framework
Last but not least, the European Union AI Act sets up a unified framework. Previous AI regulation across the EU has been inconsistent. I’d say the best phrase to describe the requirements was “it depends”, which is far from effective. The EU AI Act overview we work with aims to simplify compliance and reduce fragmentation.
Here is how it works in action (EU AI Act, Article 74):
- The European AI Office enforces the law and supervises GPAI models (GPT-4 or LLaMA 3).
- National market surveillance authorities handle local deployments and investigations.
- An EU-wide database of high-risk AI systems keeps the ecosystem clear.
Now that you understand the why behind the law, we can explore the EU AI Act’s risk categories.
Risk-Based Classification of AI Systems
For starters, what is a risk-based AI classification system, and what is the difference between each software type? The short answer is that the EU Act introduced an official categorization for all AI systems. There are four risk levels. The higher the level, the heavier the compliance requirements.
I suggest that we review the EU AI Act risk categories now:
- Minimal risk AI systems: These include spam filters, AI-based video games, or smart assistants in non-sensitive contexts. There are no required rules. But the EU AI Act summary suggests following the voluntary codes of conduct.
- Limited risk AI systems: AI chatbots, emotion recognition systems, and deepfake generation tools are common examples. In this case, software has to follow transparency rules and notify users about AI usage.
- High-risk AI systems: Exam or credit scoring, admissions systems, and AI for HRs for resume screening are examples. The rules for these systems are strict: You must complete a risk assessment, maintain documentation, guarantee human oversight, submit the system for a conformity check, and register it in the EU database.
- Unacceptable risk AI systems: Prohibited AI practices include social scoring systems, biometric identification in public spaces, or techniques that manipulate behavior or exploit kids or disabled people.
The classification is settled now, so I suggest that we move to the next piece of the puzzle: how much time you have left till the EU AI Act’s key provisions are in action.
Timeline: When Does the EU AI Act Apply?
The truth is, the clock is already ticking, and the EU Artificial Intelligence Act is in motion. Whether you build AI models, launch high-risk systems, or use generative AI for sales or support, compliance deadlines are catching up.
Forewarned is forearmed, so let’s review the EU AI Act timeline:
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Date
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Key points
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The compliance timelines go up to 2031, but the key points above are the most relevant as of 2025.
Who Must Comply With the EU AI Act?
Do not let the “EU” part in the EU AI Act overview mislead you. It does not mean the rules are only for the European companies. The law applies to any company that places AI systems on the EU market or uses them within its borders. But who exactly is covered by the regulations? That’s what the list is about:
- AI providers: Do you develop, market, or distribute an AI system under your name? In this case, you are the provider and face some of the heaviest compliance obligations under the Act.
- GPAI & Generative AI model providers: What if you build general-purpose AI models like GPT-4? Then, the European AI Office will supervise you, and you must comply with model evaluations, adversarial testing, cybersecurity protections, training data transparency, and risk mitigation.
- AI users: There’s no mercy for those using high-risk AI. In this case, you become a deployer and must perform a fundamental rights impact assessment, explain how you use AI, identify risks to users, and implement human oversight.
- Importers and distributors: Do you want to bring an AI system into the EU? In this case, you are an importer (or distributor) and should verify that providers are compliant and ensure the documentation is in place.
The conclusion? If you train models, add AI into services, or use them for hiring, you likely fall under the EU AI Act compliance.
Why Does the EU AI Act Matter for Your Business?
Say, you have found yourself on the list and have taken a look at the EU AI Act summary. What’s next? I believe the shortest answer is that the law impacts how you design, build, market, and sell AI systems. But it’s natural to have doubts and second thoughts, so I suggest that we review the reasons why it’s best to approach the EU AI Act overview carefully.
High Non-Compliance Penalties & Product Withdrawals
The fines that go up to €35 million or 7% of global annual turnover aren’t the only penalties. The product might even be withdrawn from the EU market completely if the business fails to comply.
Regardless of a company’s size or status, the EU AI Act overview key points exist for a reason. Otherwise, for large enterprises, that’s hundreds of millions of potential loss, and for startups, it might mean the end.
Loss of Competitive Advantage & Customers’ Trust
What’s even worse is the loss of trust from the customers. Think of the public damage and brand association after it’s removed from the market. Earning the credibility back can and will be challenging.
Companies that prioritize compliance win customers over and get to market faster. The alternative is less positive: blocked products and legal issues.
EU AI Act & AI Tools: Real-World Examples
Now that you are familiar with the EU AI Act overview, I can show you how various AI tools approach the regulations and ensure compliance. On today’s list, we have three tools that have different use cases but one thing in common: AI functionality.
Sembly AI
Sembly is a leading AI notetaking tool trusted by over 10,000 teams and acknowledged by Gartner. With 1 million+ analyzed meetings, it takes compliance seriously and provides an enterprise-grade level of security, making it ready for the EU AI Act.
Let’s take a look at the compliance highlights:
- GDPR & EU data hosting: Sembly offers EU-based data centers and an explicit option for EU residency.
- Privacy-first data use: No audio, video, or text data from Enterprise customers is used for model training. For other plans, clients can opt out through their settings.
- Certifications: Sembly is SOC 2 Type II, HIPAA, PCI DSS, and Microsoft 365 certified. You may find more details about all certifications on the Trust Center page.
DeepL
DeepL is a language AI platform used for translations across industries, including legal, health, and finance. Personally, I have known it for its accuracy and fluency, but compliance is another known advantage.
Let’s study whether it aligns with the EU AI Act privacy requirements:
- GDPR-first architecture: DeepL ensures that all user data remains within the EU and is handled in accordance with the European data protection laws.
- Enterprise-grade security: The platform also meets industry benchmarks with SOC 2 Type II, ISO 27001, HIPAA, and TLS encryption.
- Deployers remain in control: DeepL reminds users that compliance obligations may shift depending on how the tool is used.
Jasper AI
Jasper is a generative AI platform for marketers, sales teams, and content creators. You can generate blogs, emails, and campaign copy in seconds, all while maintaining compliance with the regulations.
Here are some of the highlights:
- EU-focused operations: Jasper recently opened an EU office to help it align with regional legal requirements.
- Responsible model training: The company maintains clear rules on how and where training data is sourced. It also actively tracks regulations related to data quality, copyright, and consent.
- Privacy-aligned policies: The recent privacy update ensures compliance with both GDPR and CCPA. It covers data access, storage, and opt-out processes.
From Sembly data controls to DeepL’s privacy-first architecture, these tools prove that compliance with the EU AI Act is not a barrier. It is rather a differentiator that should be taken seriously.
Wrapping Up
The truth is, there is no time to postpone. The businesses that use, build, or deploy AI tools can no longer afford to stay in the dark. Alignment with the EU AI Act is the new standard for trust, market access, and innovation, so it is about time to act.
The key? Stay transparent, accountable, and ensure a human-first policy. In this case, no AI Act within the EU can scare you. Good luck!
FAQ
Is Sembly compliant with the EU AI Act?
Yes. Sembly is aligned with the AI Act of the EU regulations overview. Here are the compliance highlights for your convenience:
- EU data residency and compliance with GDPR.
- No audio, video, or text usage from Enterprise Plan users for model training.
- Opt-out controls, ensuring user choice and data minimization.
- OC 2 Type II, HIPAA, and Microsoft 365 certifications.
What is the EU AI Act overview as of 2025?
The EU AI Act (Regulation 2024/1689) is the world’s first legally binding AI law, which enforces a risk-based regulatory framework across the European Union. Here’s what you need to know about it:
- It classifies AI systems into four risk tiers (prohibited, high-risk systems, limited and minimal risk).
- Bans high-risk applications like social scoring.
- Imposes strict rules on high-risk tools that are used in healthcare, education, employment, and law enforcement.
- Demands transparency, human oversight, and technical documentation.
- Establishes the European AI Office and market surveillance authorities.
How to prepare your AI tool for the EU AI Act?
You should start by identifying your tool’s risk classification. There are four options: prohibited, high-risk, limited-risk, or minimal-risk. Then take the following steps:
- Conduct a risk assessment and build a risk management system.
- Document training data, system functionality, and use cases.
- Implement human oversight and transparency mechanisms.
- Ensure a conformity assessment and register it in the EU’s official database (for high-risk systems).
- Prepare for postmarket monitoring, security controls, and audit readiness (for GPAI or systemic risk models).
Finally, keep your team aligned on data governance, privacy, and compliance deadlines, and you are good to go.
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