ARTICLE
29 July 2025

Is Your Business Ready For The EU AI Act?

AG
Addleshaw Goddard

Contributor

Addleshaw Goddard is an international law firm, almost 250 years in the making. We're trusted by over 5000 organisations, including 50 FTSE 100 companies, to solve problems, deliver deals, defend rights, comply with regulations and mitigate risk. Our work spans more than 50 areas of business law for clients across multiple industries in over 100 countries worldwide. And while the challenges our clients bring us may vary, we approach and solve them with the same, single-minded focus: finding the smartest way to achieve the biggest impact.

The EU AI Act - the world's first comprehensive law on artificial intelligence - is already in effect across the EU, with its provisions being implemented in phases.
European Union Technology

The EU AI Act - the world's first comprehensive law on artificial intelligence - is already in effect across the EU, with its provisions being implemented in phases. Provisions concerning prohibited AI practices and AI literacy have been in force since 2 February 2025.

On 2 August 2025, additional provisions will take effect, including those related to general-purpose AI (GPAI) models and penalties. As businesses navigate this transformative regulation, understanding its requirements is crucial.

The EU AI Act categorises AI systems into four risk levels - minimal, limited, high, and unacceptable - requiring organisations to assess and adapt their use of AI accordingly. It also prohibits certain AI practices, such as:

  • Purposeful manipulation of behaviour
  • Exploiting vulnerabilities
  • Social scoring
  • Real-time remote biometric identification

Certain AI applications are classified as high-risk AI systems and face the most stringent compliance obligations. This category includes AI systems used in recruitment and credit scoring.

Planning an AI compliance programme involves steps such as identifying AI systems, conducting risk assessments, and creating tailored policies to ensure compliance.

Are you prepared for the changes ahead? Our full brochure provides detailed guidance on the EU AI Act, including actionable steps to align your organisation with its requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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