Our Take
Four months to comply with fines up to 7% of global turnover. If your company serves European customers and uses AI, this should be a board-level priority right now.
Key Deadlines
The remaining core provisions of the EU AI Act become applicable on August 2, 2026. High-risk AI systems in financial services must comply by this date, with remaining provisions following by August 2027. A Code of Practice for marking AI-generated content is expected by June 2026.
Penalties
Non-compliance carries severe consequences: up to €35 million or 7% of worldwide turnover for prohibited practices, €15 million or 3% for other infringements, and €7.5 million or 1% for supplying incorrect information. These penalties apply to both EU and non-EU companies offering AI systems in the EU market.
Readiness Gap
Analysis suggests most enterprises face significant compliance gaps. Over half of organizations lack systematic inventories of AI systems in production or development. Many EU countries are still appointing the regulators who will enforce the Act.
What Companies Should Do Now
Start with a comprehensive AI system inventory, classify each system against the Act's risk categories, and begin documentation. The August deadline is four months away — preparation should be well underway.