When the EU AI Act reaches UK businesses

UK businesses can fall within the EU AI Act if they place an AI system on the EU market or if AI output they provide or deploy is used in the Union. Company registration is not decisive. Article 2(1)(c) is the route many UK firms overlook because it can cover ordinary users of AI tools, including consultancies, recruiters, agencies, accountants and service providers delivering work to EU clients or affecting people located in the Union.

Several obligations are already live. Article 4 AI literacy has applied since February 2025, Article 5 prohibited practices are live, and Article 50 transparency rules have applied since 2 August 2026. High-risk requirements were deferred to 2027 and 2028, but that delay does not suspend the literacy, transparency or prohibited-practice duties.

Article 4 requires measures supporting AI literacy for staff and anyone operating AI systems on a company’s behalf, including contractors, agency workers and freelancers. It has no fine of its own, but documented training and dated records matter for procurement, audits and related compliance checks. UK law still applies domestically, including UK GDPR as amended by the Data (Use and Access) Act 2025 and sector rules enforced by regulators such as the ICO, FCA and Ofcom.