European Union · 2025 · 02 · 02 · Policy · ~2 min read
EU AI Act phase 1 took effect
What's actually new
- Eight kinds of AI flatly banned in the EU — social-scoring, predictive policing based purely on profiling, exploiting people's vulnerabilities, untargeted face-database scraping, and more.
- Mandatory AI literacy. Companies using AI must train their staff to understand what they're using. First time AI literacy is a legal requirement.
- Penalties up to €35M or 7% of global revenue — biggest of any tech regulation in force.
If you want more
Worth knowing
- Phase 1 is the easy part. The hard rules — for general-purpose AI providers and high-risk systems — phase in through 2026 and beyond.
- Enforcement is uneven. National authorities are still being set up. The first 18 months will have more guidance than fines.
- Many vendors quietly geo-restricted features in the EU rather than comply — OpenAI's Voice Mode, Apple Intelligence at first, others. 'Available' often meant 'not in Europe'.
Who should care
Anyone deploying AI in the EU. HR teams using AI in hiring. Schools using AI for student assessment. Companies with EU customers — even if you're outside the EU, you're in scope.
What to do about it
Audit your AI uses against the banned-practices list. Set up AI literacy training for staff. Watch for guidance from your national supervisory authority. Don't wait for fines — start preparing for the 2026 general-purpose AI deadline now.
Honest take
EU AI Act phase 1 was a real moment — the world's first law saying 'these specific AI uses are illegal here'. Headlines focused on what was banned, but the quieter story was AI literacy becoming a legal requirement. Companies have to explain to staff what AI is and what it's doing. That obligation will reshape AI deployments more than any specific ban — and it's already creating a market for honest AI literacy materials.
Sources
Last verified · 2026 · 05 · 05 · Found a fact wrong? corrections@aguidetocloud.com