EU AI Act · the plain reading

What the law is, who it reaches, and what it costs.

Regulation (EU) 2024/1689 as amended by Regulation (EU) 2026/1744, read from the Official Journal text rather than from somebody else's summary of it.

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The EU AI Act, in three sentences.

How does your AI work?
What does it do to the person in front of it?

It is a product law, not a technology law

It does not ask how your AI works. It asks what it does to the person in front of it.

You built itYou bought it
In scope

Using AI is enough

You do not have to build anything. Buying a tool and pointing it at your customers puts you in scope.

Established outside the EU
Output used in the Union

It follows your output, not your address

A company established outside the EU is in scope where the output its system produces is used in the Union.

Who it applies to

Provider, deployer, or both.

Provider
Article 50(1)Say it is AI
Article 50(2)Mark the output

Provider

You put a system on the market under your own name or brand, including one you had built for you, and including one you licensed from a vendor and rebadged.

Deployer
Article 50(3)Disclose emotion
Article 50(4)Label deepfakes

Deployer

You use someone else's system in your own work. Most organisations sit here and assume it means they are exempt.

Website chatbotDeployer
Ad image generatorProvider
CV screeningDeployer

Both, usually

Different systems, different roles. Almost nobody has written down which is which.

Buy a chatbot and put your own name on it and you stop being a deployer. Article 3(3) makes you the provider, with the provider’s duties.

What you owe, and when

Most of it was delayed. These were not.

Live now

Article 52 February 2025

Eight practices banned outright. Two more from 2 December 2026.

Article 42 February 2025

Take measures supporting AI literacy in your people.

Article 502 August 2026

Tell people when they are dealing with AI, or with AI-generated content.

Chapter IX2 August 2026

Market surveillance. The enforcement machinery itself.

Not yet

High-risk, standalone systems

2 December 2027

High-risk, inside regulated products

2 August 2028

What it costs to be wrong

EU AI Act fines: what a breach actually costs.

€35M

or 7% of worldwide turnover

Article 5, banned practices. Article 99(3).

€15M

or 3% of worldwide turnover

Article 50, transparency. Article 99(4).

Set nationally

each Member State decides

Article 4, literacy. Article 99(1).

The higher of the two figures applies, except for SMEs and start-ups under Article 99(6), where the ceiling inverts to the lower, and for small mid-caps under Article 99(6a), which reaches the €15M and €7.5M tiers but not the Article 5 one. The Article 5 tier applies to Article 5 alone and is never combined with another.

Who enforces this

How EU AI Act enforcement works in practice.

How did you build it?
National market surveillance authorityMost organisations
The AI Office, BrusselsYour own GPAI model, or inside a very large platform

Most organisations answer to their national market surveillance authority: the same regime that pulls unsafe products off shelves, extended to AI systems on 2 August 2026.

If you built your system on your own general-purpose AI model, or it sits inside a very large online platform or search engine, you answer to the AI Office in Brussels instead. That is a narrow category, and it is a question most companies have never asked about themselves.

Powers

What a market surveillance authority can do without asking.

The standard product-safety powers every Member State must give its market surveillance authority. On 2 August 2026 they reached AI systems.

They can turn up unannounced

The power to carry out unannounced on-site inspections is written into the market surveillance regulation.

They can walk in

Any premises, land or vehicle you use for the business, to identify non-compliance and obtain evidence.

They can buy your product pretending to be a customer

And inspect it, and reverse-engineer it, to obtain evidence. Regulation (EU) 2019/1020, Article 14(4)(j).

They can pull your content

Where the risk is serious enough, order content off your site or a warning displayed to your users, and if you do not comply, require your hosting provider to restrict access to it.

AI Office only · Articles 75a and 75c
Seal your premises and your records
Question your staff on the record
Charge you the cost of its own investigation
Impose penalties that accrue every day

They do not need a complaint. They can open an investigation on their own initiative.

And if you are one of the organisations that falls to the AI Office instead, it can seal your premises and your records, question your staff on the record, charge you the full cost of its own investigation, and impose penalty payments that accrue every day until you comply.

There is no grace letter and no reminder. And where the AI Office enforces, the five-year limitation period on a breach that continues (an unlabelled chatbot that stays unlabelled) does not start running until the day you fix it.

Frequently asked questions

Everything you need to know

It is Regulation (EU) 2024/1689, a single set of rules applying across all 27 Member States without needing national implementation. It sorts AI by risk rather than by sector: a small number of practices are prohibited outright under Article 5, a defined set is treated as high-risk, certain systems carry transparency duties under Article 50, and everything else is largely unregulated. If your organisation builds, brands, sells or uses AI in a business context, some part of it reaches you. The question is which part, and in which role.

Find out where you stand, in thirty minutes.

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