European Union · 2025 · 02 · 02 · Policy · ~2 min read

EU AI Act phase 1 took effect

The first chunk of the EU AI Act became enforceable. Eight specific AI practices are now flat-out banned in the EU — social-scoring, untargeted face scraping for databases, emotion-recognition at work or school. Companies operating in the EU got their first 'do this and you're out of compliance' line.

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~30s
  • 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~20s

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~20s

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~45s

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.

Other recent policy updates

Sources

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