EU AI Act — Frequently Asked Questions
Clear answers to the most common questions about the EU AI Act, compliance obligations, and how AI and Shine can help.
The EU AI Act (Regulation 2024/1689) is the world’s first comprehensive legal framework for artificial intelligence. It establishes harmonised rules for the development, marketing, and use of AI systems within the European Union. The regulation takes a risk-based approach — the higher the risk an AI system poses, the stricter the obligations.
The AI Act entered into force on 1 August 2024, but its requirements apply in phases. Prohibited AI practices became enforceable on 2 February 2025. AI literacy and GPAI obligations apply from 2 August 2025. Most high-risk requirements, including deployer obligations, apply from 2 August 2026. Some Annex I high-risk systems have until 2 August 2027.
The AI Act applies to providers (developers), deployers (users), importers, distributors, and product manufacturers of AI systems, regardless of where they are based — if their AI system is placed on the EU market or its output is used in the EU. This means non-EU companies serving EU customers are also covered.
Yes. If a company provides or deploys an AI system that is placed on the EU market, or if the output of its AI system is used within the EU, the AI Act applies. This extraterritorial scope is similar to the GDPR.
The AI Act covers AI systems as defined in Article 3(1): software that generates outputs such as predictions, recommendations, decisions, or content. This includes machine learning models, deep learning, logic-based, and statistical approaches. It does not cover traditional software that operates on purely pre-defined rules without adaptive or generative capabilities.