With the AI Act, the European Union is making history. For the first time, a comprehensive regulatory framework for artificial intelligence is being introduced. This ambitious legislation is not just about technology; it is about trust, safety and the protection of fundamental rights. What many organisations underestimate is how quickly the first deadlines are approaching and how crucial it will be to bring employees along in this journey.
AI is everywhere. From spamfilters, predictive analytics in supply chains and fraud detection in finance, to smart assistants like ChatGPT and Copilot, and life-impacting applications in healthcare, mobility and the justice system — artificial intelligence is rapidly becoming embedded in daily decision-making.
This potential is enormous but so are the risks: bias, discrimination, privacy breaches, misinformation and even physical harm. The European Commission’s goal is to provide a framework that safeguards people and society without stifling innovation.
For organisations this means not only adopting new rules but also ensuring that their people understand and use AI responsibly. Compliance is as much about culture and literacy as it is about technology.
Turning principles into practice
The AI Act translates high-level goals into binding rules using a risk based approach: the greater the potential impact of an AI system, the stricter the requirements.
Low and limited risk systems such as chatbots or text generators must provide transparency. High risk applications from medical decision making to law enforcement and migration face strict requirements for documentation, monitoring and human oversight. Some systems including those for social scoring or mass surveillance are banned outright.
Organisations that fail to comply risk severe penalties of up to €35 million or 7% of global turnover. Yet even for lower risk systems, awareness and AI literacy remain essential. Employees must understand when they are interacting with AI, recognise its limits and know how to ensure that outputs are reliable and trustworthy.
The EU AI Act (Regulation (EU) 2024/1689) provides detailed criteria for classifying AI systems under a risk-based approach, including documentation requirements and fundamental rights impactassessments.
A timeline that demands action
The timeline leaves little room for delay. The AI Act became law in August 2024. By February 2025, systems deemed “unacceptable risk” will be banned from the European market. In May 2025, Codes of Practice will provide additional guidance. By August 2026, rules for general purpose and high risk AI systems will take effect. And in August 2027, the full regulatory framework will be enforced.
That gives organisations little more than eighteen months to align their processes, systems and governance. Waiting is not an option and building employee awareness cannot be left until the last moment.
The era of experimenting with AI without consequences is over. The AI Act requires every organisation to identify, classify and document its AI systems. But compliance is not only about systems; it is about people. Governance frameworks must clearly define responsibilities, guarantee transparency and ensure human oversight.
That also means making AI literacy a priority. Training employees on the use of AI and creating awareness is mandatory across all risk levels. Without informed and engaged teams, even the most robust policies and technical controls will fall short.
The scope of the Act also extends beyond the EU. Companies outside Europe that place AI systems on the EU market will face the same obligations. To help, you can use this interactive tool to determine whether your system falls under the regulation.
For organisations that act now, the AI Act can be more than a legal hurdle. It can be a catalyst for responsible digital growth. By embedding ethics into innovation and building AI literacy across teams, businesses not only meet regulatory demands but also strengthen trust with customers, partners and employees.
At AE, we guide organisations through the entire journey of AI compliance and governance. From risk assessments and technical documentation to AI checklists, knowledge hubs and training, we help put the right structures in place and empower employees with the skills and awareness they need. In doing so, regulation becomes more than a legal requirement. It becomes a catalyst for sustainable digital ambition.
The EU AI Act is not a distant prospect. The first obligations take effect in 2025. Those who act early will gain a competitive advantage. Those who wait risk not only heavy fines but also reputational damage.
The clock is ticking. And success will depend not just on systems and processes but on how well your people are prepared.
The EU AI Act (Regulation (EU) 2024/1689) provides detailed criteria for classifying AI systems under a risk-based approach, including documentation requirements and fundamental rights impact assessments.