Navigating the EU AI Act: What Businesses Need to Know

Overview

The EU AI Act (the "Act") is here to make sure artificial intelligence (AI) is used ethically and safely, building trust and accountability in how these technologies are developed and deployed 🙌. For businesses, understanding and staying compliant with these new regulations is key to harnessing AI's potential while staying on the right side of the law.

As of 2 February 2025, critical parts of the Act have come into force, impacting any business that provides or deploys AI technologies. Here’s what you need to know.

📖 Boosting AI Literacy

The Act starts by laying out its scope and key terms. One of the big takeaways is the new requirement around AI literacy. If your business provides or deploys AI systems, you’re now responsible for ensuring your team has a solid understanding of AI. This includes considering their technical knowledge, experience, education, and training—as well as how and where the AI will be used, and who it will affect.

In short, your workforce needs to be well-informed to manage AI responsibly. If you haven’t done so already, now’s the time to run a gap analysis and figure out what training your team needs to stay compliant.

🙅AI Practices That Are Off-Limits

‍The Act isn’t just about education—it also sets clear boundaries on what’s acceptable. Certain AI practices are outright banned because they pose unacceptable risks. Here are examples of the big NO-NOs:

• Exploiting Vulnerable Groups: AI systems designed to take advantage of or exploit people’s vulnerabilities are prohibited.

• Social Scoring: You can’t use AI to classify people or groups based on their characteristics or behaviour over time.

• Real-Time Biometric Identification: Using AI for real-time remote biometric identification in public spaces for law enforcement is restricted.

• Emotion Inference Systems: Using AI to infer emotions in workplaces or educational settings is banned unless it's for medical or safety reasons.

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🌐 Who’s Affected? (Hint: It’s Not Just EU Businesses)

‍he Act’s reach goes beyond the EU’s borders. It applies to any business supplying, distributing, or importing AI systems into the EU market—and even if you’re outside the EU, you’re in scope if your AI outcomes are used within the EU. The European Commission’s AI Office will be offering more guidance on exactly which AI systems fall under these rules, so keep an eye out for updates.

⏰ When Does All This Happen?

‍Although the Act officially came into force on 1 August 2024, the provisions we’ve talked about are in force from 2 February 2025. But don’t relax just yet—more key provisions will roll out in stages, with full implementation expected by 2 August 2026. This phased approach gives businesses time to adjust, but it’s smart to start early.

🧑‍💻Need Help?

‍If you’re providing or deploying AI in the EU market and need help figuring out your training requirements, using emotion inference AI, or understanding how the Act affects your business, you know where we are! Our team offers legal advice and support from @IAPP-certified AI Governance Professionals.

Drop us a line hello@founders-law.co.uk