The EU AI Act
The EU AI Act is the world's first comprehensive, horizontal legal framework governing artificial intelligence. It establishes binding obligations for all entities involved in the AI value chain — from developers and providers of AI models to (almost all) organizations deploying AI systems in real-world settings, regardless of size or sector.
Rather than regulating AI on an industry-by-industry basis, the Act adopts a risk-based approach. AI systems are classified into three core risk categories: prohibited, high-risk, and limited-risk, each triggering a different level of regulatory scrutiny and compliance obligations. The higher the potential impact on fundamental rights, safety, or society at large, the more stringent the requirements imposed on providers and deployers.
Alongside this system-level framework, the AI Act introduces a parallel regulatory layer for General-Purpose AI (GPAI) models — including so-called foundation models capable of being adapted across a wide range of use cases (for example, large language models). These rules address systemic risk, transparency, technical documentation, and downstream accountability, reflecting the unique role such models play in the AI ecosystem.
Enforcement is conducted by the National Supervisory Authorities and the EU AI Office, which are empowered with broad investigatory and corrective powers, including the ability to impose administrative fines, order the withdrawal of non-compliant AI systems from the market, and restrict their use. Depending on the type of infringement, fines can reach up to €35 million or 7% of global annual turnover.
The legislation was formally adopted by the European Union in August 2024 and is being implemented through a phased application timeline. The first provisions — including the outright ban of prohibited AI practices — became applicable in February 2025. Further obligations entered into force in August 2025, while the remaining requirements will apply progressively in August 2026 and 2027.
SenecAI helps startups and SMEs navigate this regulatory shift in a practical, proportionate, and business-aware way. We translate the AI Act's legal requirements into concrete governance structures, technical documentation, and operational controls — tailored to your technology, risk profile, and growth stage — enabling you to innovate confidently while remaining compliant from day one.