The penalty structure gives the August deadline weight. Breaches of banned AI practices can draw fines of up to 35 million euros or 7% of global annual turnover. Other , including Article 50 transparency duties, can reach 15 million euros or 3% of global annual turnover.
False, incomplete or misleading information to authorities can bring fines of up to 7.5 million euros or 1% of global annual turnover. Member states must set enforcement rules, and penalties must account for small businesses and startups.
Meanwhile, the high-risk timetable has created a second layer of uncertainty. The Council of the EU and Parliament reached a political agreement on May 7 to delay stand-alone high-risk AI rules to December 2, 2027. Systems embedded in products would move to August 2, 2028.
Even so, companies are treating the change as ‘not yet final’ until the legal process is completed. The original August 2 date still matters for planning, especially for firms using AI in biometrics, hiring, education, infrastructure, or public services.
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