What is AI Act?

The AI Act is the EU's new law on artificial intelligence. Just as GDPR set rules for how companies handle personal data, the AI Act sets rules for how AI can be built and used within the EU. The aim is for AI to be safe, transparent, and trustworthy.

At its core, the law divides AI systems by risk. The greater the risk a system poses to people's rights and safety, the stricter the requirements. Some uses are banned outright, others count as high-risk and need thorough documentation, and most everyday AI tools face lighter requirements around openness.

The law is being phased in gradually. Banned uses already apply, and the law takes full effect on 2 August 2026. That means businesses have a window to review how they use AI.

Why is the AI Act important for your business?

If you use or build AI solutions, the law affects you — even if you are not a tech company. If you use AI in recruitment or customer service, for example, you need to know which category you fall into and what requirements apply.

Getting ahead of it is both a safety net and an advantage. You avoid penalties, and you can show customers and partners that your AI use is serious and compliant.

The AI Act in practice

Say a company wants to introduce an AI tool that helps screen job applications. Because it affects people's job prospects, it likely counts as high-risk — and the AI Act then requires documentation, human oversight, and transparency towards applicants.

A company that only has a simple AI chat for common customer questions usually falls under lighter requirements — but still needs to be clear that the visitor is talking to an AI. The point is to know where you stand, and that starts with mapping how AI is actually used in the business.