Brussels, July 5, 2025 – The European Union (EU) today has officially begun implementing the Artificial Intelligence (AI) Act, a landmark legal framework and the world's first comprehensive law to regulate AI technology. This move not only affirms the EU's determination to shape a safe, transparent AI environment that respects fundamental human values but is also projected to set a new global standard.
What is the AI Act and Why is it Important?
First proposed in April 2021, the EU's AI Act is a sweeping legal framework that classifies and regulates AI applications based on the level of risk they may pose to users. This risk-based approach is divided into four main tiers:
- Unacceptable Risk: These AI systems are completely banned. This includes applications such as government-led "social scoring," AI that manipulates human behavior to cause harm, and most real-time remote biometric identification systems in public spaces (with a few narrow exceptions for law enforcement).
- High-Risk: These are AI systems that can impact people's safety or fundamental rights. This category covers AI in medical devices, transport infrastructure, hiring and recruitment, credit scoring, and the judicial system. Developers of these systems must comply with strict requirements regarding risk assessment, data quality, technical documentation, human oversight, and cybersecurity.
- Limited Risk: This includes AI systems such as chatbots or systems that generate "deepfakes." The law requires transparency, meaning users must be informed that they are interacting with an AI system.
- Minimal Risk: The vast majority of current AI applications, such as spam filters or AI in video games, fall into this group and are not subject to additional legal obligations.
The "Brussels Effect": Impact Beyond Europe
The implementation of the AI Act is expected to create a powerful "Brussels Effect." Similar to the General Data Protection Regulation (GDPR), any company—whether in Silicon Valley, Shenzhen, or anywhere else in the world—that wants to offer AI products or services to the EU's market of nearly 500 million consumers must comply with these rules.
This forces global tech companies to align their AI models with EU standards, effectively making it a de facto global benchmark. Non-compliant companies could face severe fines of up to €35 million or 7% of their global annual turnover, whichever is higher.
Challenges and Expectations
While hailed as a historic step forward, the implementation of the AI Act also faces significant challenges. The tech industry has expressed concerns that strict regulations could stifle innovation and reduce the competitiveness of European companies against their rivals from the US and China.
Furthermore, ensuring consistent monitoring and enforcement across 27 member states, each with its own legal system, will be a complex task. A new body, the "EU AI Office," has been established to coordinate implementation and ensure consistency.
However, EU policymakers insist that the goal is not to smother creativity but to promote "trustworthy innovation." By creating a clear legal framework, the EU hopes to build public trust in AI technology, thereby fostering a sustainable market for responsible AI applications.
This event marks a new chapter in the digital age. While the world is still debating how to control the power of artificial intelligence, the EU has taken a pioneering step, laying the foundation for a future where technology serves humanity safely and fairly.
