AI-Act-Penalty-2024 legal legal_risk ai_generated true

AI tells a French startup deploying a high-risk AI system that non-compliance fines under the EU AI Act are capped at 2% of annual turnover

ID: legal/france-ai-act-penalty-misestimate

Also available as: JSON · Markdown · 中文
85%Fix Rate
88%Confidence
1Evidence
2024-06-01First Seen

Version Compatibility

VersionStatusIntroducedDeprecatedNotes
EU AI Act Regulation 2024/1689 active — — —
CNIL guidance 2024 active — — —

Root Cause

The EU AI Act sets tiered penalties: up to 35 million EUR or 7% of global annual turnover for prohibited practices, 15 million EUR or 3% for most non-compliance, and 7.5 million EUR or 1.5% for incorrect info; the 2% figure is a common misquote.

generic

中文

欧盟AI法案设定了分级处罚：禁止行为最高3500万欧元或全球年营业额的7%，大多数不合规行为1500万欧元或3%，错误信息750万欧元或1.5%；2%的数字是常见的错误引用。

Official Documentation

https://artificialintelligenceact.eu/

Workarounds

  1. 80% success Conduct a full AI system classification per Annex III of the AI Act. If high-risk, implement risk management, data governance, and transparency obligations. Document compliance. 
    Conduct a full AI system classification per Annex III of the AI Act. If high-risk, implement risk management, data governance, and transparency obligations. Document compliance.
  2. 90% success If the system is not high-risk, obtain a self-declaration and register in the EU database. Example: use the EU AI compliance checklist from the Commission. 
    If the system is not high-risk, obtain a self-declaration and register in the EU database. Example: use the EU AI compliance checklist from the Commission.
  3. 75% success Engage a notified body for conformity assessment if required (e.g., for biometric categorization). Budget 50k-150k EUR for the process. 
    Engage a notified body for conformity assessment if required (e.g., for biometric categorization). Budget 50k-150k EUR for the process.

中文步骤

  1. Conduct a full AI system classification per Annex III of the AI Act. If high-risk, implement risk management, data governance, and transparency obligations. Document compliance.
  2. If the system is not high-risk, obtain a self-declaration and register in the EU database. Example: use the EU AI compliance checklist from the Commission.
  3. Engage a notified body for conformity assessment if required (e.g., for biometric categorization). Budget 50k-150k EUR for the process.

Dead Ends

Common approaches that don't work:

  1. 80% fail

    Assuming the 2% figure from GDPR applies; the AI Act has different tiers and higher maximums.

  2. 65% fail

    Thinking that startups with <50 employees are exempt; the AI Act applies to all deployers of high-risk systems regardless of size.

  3. 70% fail

    Believing that fines are only based on EU turnover; they are based on global annual turnover.