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EU AI Act

The EU AI Act is the world’s first major regulatory framework for artificial intelligence. Proposed by the European Commission and expected to take full effect between 2025 and 2026, the Act categorizes AI systems by risk level and imposes varying levels of obligations on their developers and deployers.

The Act defines four risk categories:

  1. Unacceptable risk: Prohibited (e.g., social scoring or manipulative systems).
  2. High risk: Strictly regulated (e.g., biometric ID, employment screening, medical devices).
  3. Limited risk: Subject to transparency obligations.
  4. Minimal risk: No additional regulation required.

High-risk AI systems are subject to rigorous requirements, including:

  • Human oversight and interpretability.
  • Robust documentation and audit trails.
  • Risk management and mitigation processes.
  • Transparency to users about AI involvement.

Developers must maintain conformity assessments and keep technical documentation available for EU regulators. Fines for non-compliance can reach up to 6% of global revenue.

Importantly, the Act also introduces:

  • AI system registries for public visibility.
  • Sandbox programs to support innovation.
  • Post-market monitoring for real-time oversight.

The regulation affects both companies based in the EU and those offering AI products within the EU market. Its implications extend across industries including healthcare, finance, HR tech, and public sector systems.

How PointGuard AI Addresses This:
PointGuard AI helps organizations meet EU AI Act requirements by providing runtime monitoring, behavioral documentation, and enforceable policies for AI systems. It creates auditable trails of inputs and outputs, detects compliance violations, and ensures deployed models remain aligned with transparency and safety mandates—supporting conformance without slowing innovation.

Resources:

EU AI Act

The EU AI Act: Strong Regulation with GDPR-Like Impact

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