The European Union began enforcing its first major artificial intelligence restrictions today, prohibiting AI systems that pose “unacceptable risks” to fundamental rights and safety, marking a significant milestone in global AI regulation.
Why it matters: The ban fundamentally changes how companies can deploy AI in Europe by establishing clear boundaries around technologies like emotion recognition in workplaces and social scoring systems, with violations carrying fines up to €35 million or 7% of global revenue.
Technical Details: The restrictions target specific AI applications considered too dangerous for deployment:
- Subliminal manipulation systems
- Social scoring and classification tools
- Workplace emotion recognition software
Industry Impact: Companies must immediately cease using prohibited AI systems or face severe penalties. The ban affects various sectors:
- Employment screening tools
- Surveillance systems
- Educational monitoring
Nitish Mittal, Everest Group Partner: “This is a watershed moment for EU AI Act implementation, as it will tell us a lot about the phased implementation of the EU AI Act”, according to Mittal.
Looking Forward: While today’s ban targets the most dangerous AI applications, stricter regulations for high-risk AI systems will follow in August 2025, requiring companies to implement comprehensive compliance programs.
