What Happens If I Break the EU AI Act?

The Fine Structure

The EU AI Act has three tiers of penalties. The highest tier, up to 35 million euros or 7 percent of annual global revenue, applies to violations of prohibited AI practices like social scoring or manipulative AI. The middle tier, up to 15 million euros or 3 percent of revenue, applies to most other violations including failing to meet high-risk AI requirements. The lowest tier, up to 7.5 million euros or 1 percent of revenue, applies to providing incorrect information to authorities.

For small and medium enterprises, the fines are capped at the lower of the fixed amount or the revenue percentage, whichever would be less burdensome.

How Enforcement Will Work

Each EU member state will designate national authorities to enforce the AI Act. The European AI Office will coordinate enforcement at the EU level. Enforcement is expected to follow the GDPR pattern: initial focus on education and warnings, followed by increasing strictness over time.

In practice, regulators will likely prioritize high-risk, high-harm cases first. A small business accidentally failing to update its AI inventory is unlikely to face the same treatment as a company deliberately using banned AI practices.

Beyond Fines: Other Consequences

Fines are not the only consequence of non-compliance. Regulators can order you to withdraw non-compliant AI systems from the market. They can require you to stop using an AI system until compliance is achieved. Non-compliance can also lead to civil lawsuits from people harmed by your AI use, reputational damage when enforcement actions become public, and loss of business from partners who require AI compliance.

How to Avoid Problems

Start with the basics: know what AI you use, classify it by risk level, and address the highest risks first. Document your compliance efforts, even if they are not perfect yet. Regulators look more favorably on businesses that are making genuine efforts to comply than those that ignore the rules entirely. If you are unsure about a specific AI use case, seek guidance from your national AI authority or a qualified legal advisor.

Staying Current With AI Law

AI regulation is evolving faster than almost any other area of law. What is compliant today may not be sufficient next year. Build a habit of checking for regulatory updates at least monthly. Subscribe to updates from your national AI authority, your industry association, and reputable AI compliance publications.

Do not try to become a legal expert yourself. Instead, build a relationship with a legal advisor who understands AI regulation and can help you interpret new requirements as they emerge. Even a brief annual consultation can save you from costly compliance mistakes. The investment in staying informed is small compared to the cost of discovering too late that your practices have fallen behind the law.

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.