EU AI Act Begins Initial Enforcement Phase, Banning High-Risk AI Systems

Under the new regulations, several AI applications are now prohibited, including:
– Social scoring systems
– AI for behavioral manipulation
– Biometric surveillance in public spaces
– Predictive policing based on physical appearance
– AI systems detecting emotions in workplaces and schools

This enforcement comes at a time when the EU is actively developing its digital identity infrastructure, with Italy preparing to launch the EU’s first digital identity wallet and various member states exploring biometric applications for security purposes.

Organizations found violating the Act could face substantial penalties of up to €35 million or 7 percent of annual global revenue, whichever is higher. However, experts suggest initial enforcement may be measured. Nitish Mittal, partner at Everest Group, noted, “Between now and August, I doubt there will be lots of fines levied.”

The enforcement mechanism involves both national and EU-level regulators, with some countries like Spain establishing dedicated AI agencies while others opt for a decentralized approach. The European Commission will directly oversee enforcement for general-purpose AI models.

Companies are advised to use this initial period to assess AI systems against the Act’s risk thresholds, discontinue prohibited AI applications, implement operational risk plans, and develop AI governance strategies.

As the world’s first comprehensive AI regulation, the EU AI Act is expected to influence similar legislation globally. Companies worldwide with EU market presence must prepare for compliance with these new requirements.