EU AI Act Phase 2 Kicks In: What Every AI Company Must Know Before June 2026
High-risk AI system providers now face mandatory audits, incident reporting, and transparency requirements. Non-compliance fines can reach €35M or 7% of global revenue.
The world's first comprehensive AI regulation law — now in Phase 2 enforcement.
The EU Artificial Intelligence Act is the first comprehensive AI regulatory framework in the world, published in the EU Official Journal in August 2024. It categorizes AI systems by risk level: unacceptable risk (prohibited), high risk (regulated), limited risk (transparency obligations), and minimal risk (unregulated). Phase 2, entering force March 2026, covers high-risk AI systems including hiring tools, credit scoring, biometrics, and medical AI. Non-compliance fines reach €35M or 7% of global revenue. US and UK companies are subject if they serve EU users.
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