Does Article 5 apply to my small business?

Yes, Article 5 applies to all organisations operating in the EU, regardless of size. However, most SMEs do not use AI systems that fall under prohibited categories.

When does Article 5 take effect?

Article 5 prohibitions are already in effect as of 2 February 2025. Enforcement mechanisms are being established by national authorities.

What if I unknowingly use a prohibited AI?

Ignorance is not a defence. You are responsible for understanding the AI tools your organisation uses. Conduct an AI inventory immediately to identify any potential issues.

Quick answer

Article 5 bans social scoring, real-time biometric surveillance (with exceptions), and manipulative AI. Most businesses are safe, but you should verify your AI tools are not on the prohibited list.

Updated June 2026 · MmowW AI Compliance

EU AI Act Article 5: Prohibited AI Practices Explained

What Does Article 5 Actually Ban?

The EU AI Act Article 5 establishes an absolute prohibition on certain AI practices deemed unacceptable. These include social scoring systems, real-time biometric identification in public spaces (with limited law enforcement exceptions), AI that exploits vulnerabilities of specific groups, and subliminal manipulation techniques.

For most businesses, these prohibitions will not directly affect operations. However, if your company uses AI for customer scoring, facial recognition, or behavioural targeting, you need to review compliance immediately.

How to Check If Your AI Is Affected

Start by listing every AI tool your organisation uses. For each tool, ask: does it score or rank individuals based on personal characteristics? Does it use biometric data? Does it target vulnerable populations?

If the answer is yes to any of these, you need a detailed compliance review before 2 August 2026. If no, document your assessment — this record becomes part of your compliance evidence.

Penalties for Violations

Violations of Article 5 carry the highest penalties under the EU AI Act: up to 35 million euros or 7% of global annual turnover, whichever is higher. This is significantly more severe than GDPR fines.

The severity reflects the EU's position that these practices represent fundamental rights violations. Even inadvertent violations can trigger enforcement action.

What to Do Right Now

Conduct an AI inventory — list every tool, its purpose, and what data it processes. Cross-reference against Article 5 categories. Document your findings. If you identify any prohibited practices, discontinue them immediately.

For borderline cases, seek guidance from your national AI authority. The EU AI Office has published initial guidance, but national interpretations may vary.

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This article is for informational purposes only and does not constitute legal advice. Regulatory requirements change frequently — verify current rules with official sources. Built by Sawai Gyoseishoshi Office, Hiroshima, Japan.