What Every Profession Should Know About the AI Act

Artificial intelligence is evolving rapidly and playing an increasingly important role in many industries and aspects of modern life, and it’s important to ensure that this technology is handled carefully and responsibly. With that in mind, the European Union was the first major global power to introduce a comprehensive regulatory framework for artificial intelligence: the Artificial Intelligence Act.

Quick Summary

• The EU’s AI Act entered into force in August 2024, with new provisions rolling out over time.
• It regulates AI systems according to their risk and applies to relevant providers and deployers within its scope across the European Union
• It requires providers and deployers of AI systems to take measures to support the development of AI literacy among their staff and other people who operate or use AI systems on their behalf
• From August 2026, companies also need to be transparent about how and where they use AI.
• Penalties for breaching the AI Act include tiered fines reaching up to 7% of annual turnover.
• Open Institute of Technology’s programs (such as the MSc in Responsible Artificial Intelligence) helps the next generation of tech professionals to understand AI and how to educate others on its responsible usage.

Exploring the European Artificial Intelligence Act

The AI Act was proposed by the European Commission in April 2021, more than a year before ChatGPT was publicly released. The legislation was subsequently negotiated and amended as AI technologies, including generative AI and chatbots, developed, before the European Parliament adopted it in March 2024. It was approved by the EU Council a couple of months later, and came into force on August 1, 2024.

However, its rules and requirements did not all become applicable right away. Instead, provisions of the AI Act have been rolling out gradually, with the rules for high-risk AI systems in certain sensitive areas, including employment, applying from December 2027.

This has led to some misconceptions about the Act being “postponed” or “suspended” somehow. In actuality, many of its provisions are already in effect, and companies across the European Union – as well as those who do business in Europe – need to be aware of which rules they currently need to follow, as well as the schedule and deadlines for upcoming provisions.

Initial Regulations

Since February 2025, Article 4 of the AI Act has required providers and deployers of AI systems to take measures to support the development of AI literacy among their staff and other people who operate or use AI systems on their behalf. This doesn’t necessarily mean that they need to have formal training or some sort of qualification in AI, but organizations should take measures to support the development of AI literacy appropriate to their staff, the AI systems they use, and the context in which those systems are used.

Companies using AI chatbots to help them prepare commercial quotations, for example, should know how to do this in a safe and responsible manner. Similarly, businesses that use AI to generate content or summarize documents should also have relevant educational systems and policies in place to ensure that this is done correctly.

To comply with this part of the Act, companies are encouraged to:

• Set clear internal guidelines about the use of AI.
• Host AI tool training sessions for workers.
• Have procedures in place to verify AI-generated content.

What Changed in August 2026

On August 2, 2026, several new AI Act provisions became applicable, including transparency obligations for certain AI systems under Article 50. To be more precise, companies are now obliged to make it clear to their users, customers, and clients when, where, and how AI is being used; i.e., if a customer is chatting with an AI bot, they need to be informed of that right from the start.

This also covers AI-generated or AI-manipulated content. For certain AI-generated or AI-manipulated content, providers must use machine-readable markings to enable its detection, while deployers have separate obligations to disclose certain deepfakes and AI-generated or manipulated text published on matters of public interest. The Act doesn’t say that companies can’t use generative AI, but they do need to be open about it.

The regulation is particularly strict in situations when AI has been used to entirely or partly produce content that is designed to inform the public about important subjects, such as:

• Safety
• Energy
• Health
• Consumer rights
• Taxation

Again, companies aren’t banned from using AI to create this kind of content, but deployers generally must clearly disclose AI-generated or manipulated text published on matters of public interest unless it has undergone human review or editorial control.

Looking Ahead

From December 2, 2027, additional provisions of the AI Act will apply to certain high-risk AI systems, including systems used in employment and recruitment, such as those used for CV screening, candidate analysis, or other recruitment decisions. These may fall into the “high-risk” category, mentioned earlier, and even though these rules don’t apply today, experts encourage companies to get ready for the next regulatory phase by:

• Remaining aware and up-to-date with the AI Act’s existing provisions and rollout schedule.
• Auditing their usage of AI systems to understand their current and future obligations.
• Establishing detailed guidelines, policies, and clear workflows around AI usage.
• Training employees on how to use AI correctly and responsibly, in accordance with the Act.

Companies also need to be aware that violations of the AI Act can lead to significant penalties, with fines for certain infringements reaching up to €35 million ($39 million) or 7% of a company’s total worldwide annual turnover, whichever is higher.

Key Takeaways

• The EU’s AI Act takes a risk-based approach to artificial intelligence, with different requirements applying to AI systems depending on their risks and uses.
• At this time, providers and deployers are required to take measures to support AI literacy among relevant staff, while certain AI systems and uses are subject to transparency requirements
• In the coming years, businesses that use AI for “high-risk” activities, like recruitment, will need to ensure they comply with emerging provisions.

Become an AI Leader at OPIT

The AI Act proves that AI literacy is becoming an increasingly important skill to master, and the next generation of tech professionals will need to be able to not only understand AI, but educate others on how to use it responsibly. You can take your first steps on that journey by enrolling in the Open Institute of Technology’s MSc in Responsible Artificial Intelligence.