EU AI Act underscores Europe’s regulatory clout

Europe continues to struggle with developing and commercialising AI, trailing powers such as the US and China and prompting reflection within the bloc. Its strongest influence remains regulation, where the EU has positioned itself as a global force in shaping how the technology is governed.

The EU’s AI Act came into full effect on Aug 2, marking a major milestone in technology legislation. While not the first law to cover AI, it is described as the world’s most comprehensive and strictest set of measures. Companies that fail to comply face fines of potentially as much as 35 million euros (US$40.4 million), or 7 per cent of their global revenue.