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The AI Act has become one of the most relevant topics in the European business and technology world. If you work with artificial intelligence or are exploring its implementation, understanding the new European regulation is a must, not an option.
But don’t worry: you don’t need to be a lawyer to understand the key points. In this article, we’ll explain in a clear, practical, and up-to-date manner how to comply with the European AI Act and avoid penalties that could jeopardize your project.
Moreover, if you’re at that point where you know AI is the way forward but need to take the next step with confidence, at the end of the article, we’ll tell you how Founderz can help you.
What is the European AI Act?
The AI Act (also known as the AI Law or EU AI Act) is the first comprehensive regulation on artificial intelligence in the world. It was approved by European institutions in 2024, and its goal is clear: to ensure that the development and use of AI systems are safe, ethical, and respectful of the fundamental rights of European citizens.
In other words, the European AI Act aims to prevent abuse, risks, or misuse of this technology without hindering innovation. To achieve this, it classifies AI systems according to their risk level and sets different requirements for each case.
Who is affected by the European AI Act?
Here’s the key point: it affects all companies and organizations that develop, use, or market AI systems in the European market, regardless of where they are physically located.
This means that if your company operates with AI models, whether for data analysis, chatbots, process automation, etc., you need to check if you fall under any of the regulated scenarios.
Risk classification according to the European AI Act
The European AI Act divides AI systems into four categories according to the risk they pose:
Unacceptable risk
These systems are completely prohibited. Examples:
- Subliminal manipulation causing harm.
- Social scoring by governments.
- Real-time biometric surveillance in public spaces (except in exceptional cases).
If your system falls here, it cannot be used in the EU.
High risk
Systems that can significantly affect people’s lives. Includes:
- Automated recruitment.
- Systems in education or justice.
- Critical infrastructures (transport, healthcare).
These systems can be used but require strict requirements for transparency, assessment, documentation, and human oversight.
Limited risk
This includes systems like:
- Chatbots.
- Product or content recommender systems.
They must clearly inform the user that they are interacting with AI, but don’t require the same demanding processes as high-risk systems.
Minimal risk
AI systems with no significant impact, like spell checkers or spam filters.
What happens if you don’t comply with the AI Act?
According to the approved text, fines can reach up to 35 million euros or 7% of global annual revenue, depending on the infringement and company size.
This places the European AI Act on par with the GDPR, focusing on the protection of the citizen. So, it’s better to prevent than to pay.
Key steps to comply with the European AI Act in your company
- Evaluate your AI systems
Conduct an internal audit to identify all AI systems in use or development within your company. What do they do? What data do they use? Do they interact with people? Do they make decisions?
- Classify them by risk levels
With the audit completed, place each system in the appropriate category: high risk, limited risk.
This is key to knowing what legal requirements you must comply with.
- Register and audit
If you work with high-risk AI, you need:
- Complete technical documentation.
- Impact assessments.
- Quality management systems.
- Human oversight of the results.
- Transparency to users and authorities.
This may seem complex, but there are tools and methodologies to facilitate the process.
- Train your team
The new European AI Act requires companies to train their employees in artificial intelligence literacy, even if they only use tools such as ChatGPT or Copilot. According to Article 4 of the regulation, the responsibility lies with the company, which must ensure that its team is familiar with the basic principles, regulation, and responsible use of AI.
At Founderz, we have an AI certificate program for companies that already complies with these requirements, with the regulation and responsible use of Artificial Intelligence.
Investing in training your employees today is the best way to avoid legal problems and protect your company’s reputation tomorrow.
- Stay updated
The AI Act is evolving. Details will still be refined in the coming years. It’s important to keep track of official updates and review how the regulation adapts to each sector.
You can do this directly on portals like EU Artificial Intelligence Act or through specialized entities.
How to know if your AI system is “high risk”?
The answer is not always simple. If in doubt, check with legal or technological experts specializing in AI and European regulation. You can also use automatic self-assessment tools or attend training sessions.
What’s different about the AI Act compared to other regulations?
Unlike other regulations like the GDPR, the European AI Act does not only focus on data processing, but also on how AI makes decisions, interacts with humans, and generates real-world consequences.
That’s why it’s crucial to understand not only the technology, but its ethical, legal, and social context.
And if I’m just starting? Does it affect me too?
Yes, but don’t worry. If you’re in the early stages, the best thing you can do is start right from the beginning. Designing your system with the law in mind from day one is much cheaper, faster, and safer than having to adapt it later.
The AI Act is not a threat but an opportunity. Yes, it requires effort, but it also ensures that artificial intelligence is used in a safe, transparent, and responsible manner.
If you lead a startup, manage an innovation team, or are simply evaluating how to apply AI in your business, now is the time to act.
Prepare to lead the future with AI and comply with the law
At Founderz’s AI and Innovation certificate program, we collaborate with experts in technology, business, and law. With our training, you’ll learn how to create real solutions with artificial intelligence and comply with the new European regulations without complications.
In just a few months and 100% online, you will learn how to apply AI legally, ethically, and strategically, and you will receive official certification from Founderz and Microsoft.
Remember: adapting to the European AI Act not only avoids fines but also positions you as a prepared, responsible, and trustworthy company in an increasingly regulated environment.It’s not just about compliance. It’s about leading with vision.
This post is also available in: Español
