EU AI Act
The European Union regulation that classifies AI systems by risk level and sets obligations for them (Regulation (EU) 2024/1689); its obligations apply in stages.
- 01
Why it matters
The act covers not only companies in the EU but also providers that place their system on the EU market or whose output is used in the EU. It bans some practices such as social scoring and requires documentation, human oversight and data governance in high-risk areas such as recruitment and credit assessment. It also includes transparency rules, such as users knowing they are talking to an AI.
- 02
Example
A company selling HR software that ranks CVs to customers in the EU sees that recruitment is listed among the high-risk areas. It prepares its technical documentation, human oversight steps and data quality checks accordingly.
- 03
Common mistake
Thinking “we have no company in the EU, so it does not concern us”. If the product is offered to users in the EU, obligations may apply.
- 04
Related terms
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