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The European Union's comprehensive AI regulation (Regulation 2024/1689/EU), the world's first binding legal framework specifically for artificial intelligence. The Act classifies AI systems by risk level — prohibited, high-risk, limited-risk, and minimal-risk — and imposes obligations that scale with risk level. High-risk AI systems must undergo conformity assessment, maintain technical documentation, implement human oversight, and register in an EU database before deployment. Full enforcement begins August 2, 2026. The Act applies to any AI system deployed in the EU, regardless of where the developer is based.
Why this matters for your team
The EU AI Act applies to you if any EU-based users interact with your AI system — even if your company is based outside the EU. The most important first step: determine your risk classification. Most commercial SaaS AI falls in the minimal-risk or limited-risk category, which requires only basic transparency measures.
A US startup selling an AI-powered recruitment tool to European companies must comply with the EU AI Act's high-risk requirements, even though the company is based in the United States.