AI for business · AI Act guide

The EU AI Act — the complete guide with examples

Everything the AI Act requires, explained with general examples from ordinary companies. Updated for the Digital Omnibus (Regulation (EU) 2026/1744).

The risk pyramid in one minute
Prohibited

10 practices — e.g. emotion recognition at work, social scoring, manipulation, nudify apps.

High risk

8 areas (HR, credit, education, critical infrastructure …) and safety components of products — strict rules from Dec 2027 / Aug 2028.

Transparency

Chatbots, deepfakes, AI text on public-interest matters, generated content — since 2 Aug 2026.

Minimal risk

Most uses — writing, translation, analysis, coding: only AI literacy.

Contents: Who are you? Roles · Prohibited practices (Art. 5) · High-risk AI (Annex III) · Transparency (Art. 50) — since 2 Aug 2026 · General-purpose AI models · AI literacy (Art. 4) · Fines · What the 2026 Digital Omnibus changed · Guidelines, codes and standards

1. Who are you? Roles

Provider

Develops an AI system or model (or has it developed) and places it on the market or puts it into service under its own name or trademark — paid or free.

ExampleA Slovenian start-up that sells an AI tool for screening CVs; OpenAI for ChatGPT.
Deployer

Uses an AI system under its authority in a professional activity. Most companies are deployers.

ExampleA hotel that uses a chatbot on its website; a company whose HR uses an AI screening tool.
Importer

An EU company that places on the EU market an AI system bearing the name of a provider established outside the EU.

ExampleA Slovenian distributor that starts selling a US AI product in the EU for the first time.
Distributor

Makes an AI system available on the EU market without being the provider or importer (reseller).

ExampleAn IT reseller offering several AI tools to its clients.
Product manufacturer

Places a product (machine, toy, medical device …) on the market with an AI system as its safety component, under its own name.

ExampleA manufacturer of lifts with an AI-based safety function.
Authorised representative

A person in the EU mandated by a non-EU provider to carry out its AI Act obligations.

ExampleA law firm in Ljubljana acting for a Swiss AI provider.
When a deployer becomes a provider (Art. 25)
  • You put your own name or trademark on a high-risk AI system already on the market (white-labelling).
  • You make a substantial modification to a high-risk AI system so that it remains high-risk.
  • You change the purpose of an AI system (including a general-purpose one) so that it becomes high-risk — e.g. you start using a general chatbot to rank job applicants and offer this as a service.

2. Prohibited practices (Art. 5)

Banned for everyone — providers and users. The fine is up to €35 million or 7% of turnover.

Applies from 2 Feb 2025Harmful manipulation

Subliminal, manipulative or deceptive techniques that distort behaviour and cause or are likely to cause significant harm.

ExampleAn app that uses hidden cues to push users into loans they cannot afford.
Applies from 2 Feb 2025Exploiting vulnerabilities

Exploiting vulnerabilities due to age, disability or a specific social or economic situation in a way that causes significant harm.

ExampleA toy with a voice assistant that encourages children to do dangerous things.
Applies from 2 Feb 2025Social scoring

Evaluating people over time based on social behaviour or personal traits, leading to unjustified or disproportionate detrimental treatment in unrelated contexts.

ExampleA landlord refuses tenants based on a score built from their social media activity.
Applies from 2 Feb 2025Predicting crime from profiling

Assessing the risk that a person will commit a crime based solely on profiling or personality traits.

ExampleSoftware that flags employees as “likely thieves” based on their background.
Applies from 2 Feb 2025Untargeted scraping of faces

Creating or expanding facial recognition databases by untargeted scraping of images from the internet or CCTV.

ExampleBuilding a face search engine from photos found online.
Applies from 2 Feb 2025Emotion recognition at work and school

Inferring emotions of people at the workplace or in education, except for medical or safety reasons.

ExampleAnalysing call-centre agents’ voices for frustration; webcam “attention tracking” in online exams. Detecting driver fatigue for safety is allowed.
Applies from 2 Feb 2025Biometric categorisation by sensitive traits

Categorising people by biometric data to infer race, political opinions, trade union membership, religious beliefs, sex life or sexual orientation.

ExampleCameras in a shop that guess customers’ religion or orientation for targeted ads.
Applies from 2 Feb 2025Real-time remote biometric identification by police

Real-time remote biometric identification in publicly accessible spaces for law enforcement, except in narrowly defined cases with prior authorisation.

ExampleLive face recognition on city squares to find people.
Applies from 2 Dec 2026Non-consensual intimate images

AI that generates realistic intimate or sexually explicit images of identifiable people without their explicit consent (“nudify” apps). Added by the 2026 Omnibus.

ExampleAn app that “undresses” photos of classmates or colleagues.
Applies from 2 Dec 2026Child sexual abuse material

AI that generates or manipulates child sexual abuse material. Added by the 2026 Omnibus.

3. High-risk AI (Annex III)

AI used in these areas is high-risk. Stand-alone systems: obligations from 2 Dec 2027. AI as a safety component of regulated products (Annex I — machinery, toys, medical devices, lifts …): from 2 Aug 2028.

1Biometrics

Remote biometric identification (not simple verification like unlocking a phone), biometric categorisation, emotion recognition where not prohibited.

ExampleFace recognition at a stadium entrance to spot banned fans.
2Critical infrastructure

Safety components in the management of digital infrastructure, road traffic and the supply of water, gas, heating and electricity.

ExampleAI that controls pressure in a regional water network.
3Education and training

Admission, evaluating learning outcomes, deciding the appropriate level of education, detecting cheating in tests.

ExampleAutomatic grading of final exams; AI proctoring of online tests.
4Employment and workers

Recruitment and selection (targeted job ads, filtering applications, evaluating candidates), decisions on promotion, termination, task allocation based on behaviour or traits, monitoring and evaluating performance.

ExampleAn ATS that ranks CVs; software that decides shift allocation from performance data.
5Essential private and public services

Eligibility for public benefits, creditworthiness and credit scores (not fraud detection), risk assessment and pricing in life and health insurance, triage of emergency calls.

ExampleA leasing company’s AI that approves or rejects consumer credit.
6Law enforcement

Risk assessments of victims or offenders, polygraph-like tools, evaluating evidence, profiling in investigations.

ExamplePolice software that assesses the reliability of evidence.
7Migration, asylum and border control

Risk assessments of travellers, examining asylum and visa applications, detecting and identifying people at borders.

ExampleAutomated triage of visa applications.
8Justice and democratic processes

Assisting courts in researching and interpreting facts and law; AI intended to influence the outcome of elections or voting behaviour.

ExampleA tool that drafts judgments for judges; micro-targeted voter persuasion.
Exceptions (Art. 6(3)) — not high-risk if the system …
  • it performs a narrow procedural task (e.g. converting unstructured data into structured data, sorting incoming documents);
  • it improves the result of a previously completed human activity (e.g. polishing the language of a text a person has written);
  • it detects decision patterns or deviations without replacing or influencing the human assessment without proper human review;
  • it performs a preparatory task for an assessment (e.g. translating or indexing documents).

A system that profiles people is always high-risk. A provider relying on an exception must document its assessment and register the system in the EU database.

What a deployer of high-risk AI must do (Art. 26, 27, 86)
  • Use the system according to the provider’s instructions for use.
  • Assign human oversight to people with the necessary competence, training and authority.
  • Make sure the input data you control is relevant and sufficiently representative.
  • Monitor operation; if there is a risk or a serious incident, inform the provider and the authority and suspend use.
  • Keep automatically generated logs for at least six months.
  • Before using high-risk AI at the workplace, inform workers’ representatives and the affected workers.
  • Inform people that a high-risk AI system is used to make or assist decisions about them.
  • Use the provider’s information to carry out your data protection impact assessment (GDPR Art. 35).
  • Public bodies, private providers of public services, banks (credit scoring) and insurers (life and health pricing): carry out a fundamental rights impact assessment (Art. 27) — it can build on your DPIA.
  • People affected by a decision based on high-risk AI have a right to a clear explanation of the AI’s role (Art. 86).
What a provider of high-risk AI must do
  • Risk management system throughout the life cycle (Art. 9).
  • Data governance: relevant, representative, as error-free as possible training, validation and test data; bias checks (Art. 10).
  • Technical documentation (Art. 11) and automatic logging (Art. 12).
  • Instructions for use and transparency towards deployers (Art. 13).
  • Design for effective human oversight (Art. 14).
  • Accuracy, robustness and cybersecurity (Art. 15) — presumed for cybersecurity if the Cyber Resilience Act requirements are met.
  • Quality management system (Art. 17), proportionate for SMEs and small mid-caps.
  • Conformity assessment, EU declaration of conformity and CE marking (Art. 43, 47, 48).
  • Registration in the EU database before placing on the market (Art. 49).
  • Post-market monitoring and reporting of serious incidents (Art. 72, 73).

4. Transparency (Art. 50) — since 2 Aug 2026

AI that talks to people

Providers must design chatbots and voice assistants so that people are told they are interacting with AI, unless it is obvious from the context.

Example“Hi, I’m Ana, the shop’s virtual assistant. I’m an AI — if you prefer, I can connect you with a colleague.”
Machine-readable marking of AI content

Providers of generative AI must mark synthetic audio, images, video and text in a machine-readable, detectable way (e.g. watermarks, metadata). Systems on the market before 2 Aug 2026 have until 2 Dec 2026.

ExampleAn image generator embeds C2PA content credentials in every image.
Emotion recognition and biometric categorisation

Deployers must inform the people exposed (where these systems are not prohibited).

ExampleA market research booth that analyses facial reactions to ads must say so clearly.
Deepfakes

Deployers must disclose that image, audio or video content resembling real people, objects, places or events has been generated or manipulated. For evidently artistic, satirical or fictional works a disclosure that does not spoil the work is enough.

ExampleA realistic AI video of the CEO announcing a promotion: label “AI-generated”.
AI text on matters of public interest

Deployers publishing AI-generated or manipulated text to inform the public on matters of public interest must disclose it — unless a person reviewed it and someone holds editorial responsibility.

ExampleA municipality publishes AI-written news about road closures without editorial review → label it.

The information must be clear and distinguishable, given at the latest at the first interaction or exposure, and accessible to people with disabilities. The Commission’s Code of Practice on marking and labelling AI-generated content (final, 10 June 2026) is a voluntary guide; codes do not give a presumption of conformity. Notice generator →

5. General-purpose AI models

  • Who: companies that develop general-purpose AI models (the models behind ChatGPT, Claude, Gemini, Mistral …) — not the companies that use them.
  • Duties since 2 Aug 2025: technical documentation, information for downstream providers, a copyright policy respecting opt-outs, a public summary of training content (Commission template of 24 Jul 2025).
  • Models with systemic risk (trained with more than 10²⁵ FLOPs or designated): model evaluations, adversarial testing, serious incident reporting, cybersecurity.
  • The General-Purpose AI Code of Practice (10 Jul 2025) is a voluntary way to show compliance; most large providers signed it.
  • Fine-tuning a model and offering it to others can make you a provider of a (modified) model — obligations then cover only your modification.
  • Models placed on the market before 2 Aug 2025 must comply by 2 Aug 2027. The AI Office can enforce from 2 Aug 2026.

6. AI literacy (Art. 4)

  • Who: every provider and deployer — i.e. every company whose staff (or contractors acting for it) use AI at work.
  • What: take measures that support the development of AI literacy, taking into account people’s knowledge, experience, the context and who is affected. No level has to be guaranteed.
  • Practical minimum: an AI usage policy, a short training adapted to roles (what AI can and cannot do, data rules, checking outputs), an internal record of who was trained.
  • More for higher risk: people who use AI in HR, credit or customer decisions need deeper training on bias, oversight and explanation.
  • No certificate is required and there is no separate fine for Art. 4 in the AI Act, but lack of literacy weighs in when something goes wrong. Supervision applies from 3 Aug 2026.
Free course with certificate →

7. Fines

  • Prohibited practices: up to €35 million or 7% of worldwide annual turnover.
  • Most other obligations (high-risk, transparency, value chain): up to €15 million or 3%.
  • Incorrect, incomplete or misleading information to authorities: up to €7.5 million or 1%.
  • The higher amount applies to large companies, the lower to SMEs and small mid-caps (SMC). Authorities can also give warnings and non-monetary measures.
  • General-purpose AI providers: up to €15 million or 3%, imposed by the Commission.

8. What the 2026 Digital Omnibus changed

  • High-risk rules postponed: Annex III to 2 Dec 2027, Annex I products to 2 Aug 2028.
  • AI literacy: an obligation of effort, no certificate or level required.
  • Two new bans from 2 Dec 2026: non-consensual intimate images and child sexual abuse material.
  • Machine-readable marking: grace period to 2 Dec 2026 for generative AI already on the market.
  • Small mid-caps (up to 750 employees) get SME-like relief: lower fine caps, lighter documentation, priority in sandboxes.
  • New legal basis (Art. 4a) for processing sensitive data to detect and correct bias — optional, under strict safeguards.
  • Fundamental rights impact assessment can reuse the GDPR DPIA; the AI Office will publish a template questionnaire.
  • The AI Office supervises AI systems built on a provider’s own general-purpose model and AI in very large platforms.
  • National regulatory sandboxes by 2 Aug 2027; an EU-level sandbox with priority for SMEs.
  • Narrower definition of “safety component”: AI for convenience, efficiency or quality control not related to safety does not make a product high-risk.

9. Guidelines, codes and standards

Guidelines on prohibited AI practices

Commission guidelines with many examples for Art. 5.

Guidelines on the definition of an AI system

Helps decide whether software is an “AI system” at all (simple rule-based software usually is not).

General-Purpose AI Code of Practice

Transparency, copyright and safety chapters for model providers.

Guidelines on obligations for general-purpose AI models

Who is a GPAI provider, when fine-tuning makes you one.

Template for the public summary of training content

Mandatory template for GPAI providers.

Code of Practice on marking and labelling AI-generated content

Practical guide for Art. 50: watermarks, metadata, labels for deepfakes.

AI literacy — questions and answers

Commission FAQ, regularly updated, with examples from companies.

Harmonised standards (CEN-CENELEC JTC 21)

European standards for high-risk AI (risk management, data, logging, quality) — expected around the end of 2026; they give a presumption of conformity.

ISO/IEC 42001 — AI management system

A voluntary, certifiable international standard for governing AI in an organisation — useful structure for policies and records.

EU model contractual clauses for AI procurement (MCC-AI)

Template clauses for public buyers — also useful for private contracts with AI suppliers.

AI Act Service Desk and Single Information Platform

The Commission’s official help desk with timeline, FAQs and a compliance checker.

General information, not legal advice — consult a lawyer for borderline cases. Regulations reviewed on 29 Sep 2026.