AI Act FAQ

AI Act Penalties: Frequently Asked Questions

5 questions answered with specific EU AI Act article references. 98 days until the August 2, 2026 enforcement deadline.

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What are the maximum fines under the AI Act?

Up to EUR 35 million or 7% of global annual turnover for prohibited practices (Article 99(1)). Up to EUR 15 million or 3% for other violations (Article 99(2)). Up to EUR 7.5 million or 1.5% for providing incorrect information to authorities (Article 99(3)).

Are there reduced fines for SMEs?

Yes. Article 99(6) states that when deciding on fines, authorities shall give due regard to the size of the undertaking and its annual turnover. Administrative fines for SMEs and startups may be applied as a percentage of turnover rather than absolute amounts.

Which authority imposes the fines?

National market surveillance authorities designated by each EU member state. The European AI Office coordinates cross-border enforcement. Each member state must designate its authority by August 2, 2025 (Article 70).

Can individuals be fined?

The AI Act primarily targets organisations. However, Article 99 applies to 'providers, deployers, authorised representatives, importers, and distributors' — any legal or natural person in the AI value chain.

How do AI Act fines compare to GDPR?

AI Act fines are higher: up to EUR 35M/7% vs GDPR's EUR 20M/4%. Both can be imposed simultaneously if both regulations are violated by the same system.

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