The European Union AI Act Literacy and Practice Bans Take Effect

The European Union AI Act officially came into force on August 1, 2024, with its first obligations taking effect on February 2, 2025. An article by Ius Laboris firm reports that the initial requirements focus on promoting artificial intelligence literacy among organizations and banning certain AI practices deemed unacceptable with regard to EU values.

The AI Act establishes a uniform legal framework for AI systems. It is designed for the development, marketing, implementation, and use of AI systems in the EU and ensures a high level of protection of fundamental rights, as documented in the Charter of Fundamental Rights of the European Union.

One of the first obligations requires organizations to enhance AI literacy, ensuring that individuals working with AI possess the necessary knowledge and skills. While the act doesn’t define a specific standard for AI literacy, organizations must implement training programs and responsible AI policies tailored to their needs. The European Commission’s AI Office provides a living repository of non-binding AI literacy practices, which serves as a reference for compliance.

In addition to AI literacy, the act prohibits specific AI practices that violate fundamental rights. 

These include AI systems that manipulate individuals through subliminal techniques, exploit vulnerabilities due to age or disability, or classify people based on social behavior. The ban also extends to AI-driven emotion detection, except in medical or safety contexts, and the unauthorized collection of facial recognition data from online sources or CCTV. Violations carry significant financial penalties, with companies facing fines of up to €35 million or 7% of their annual turnover.

To ensure compliance, employers must evaluate their AI systems, classify risk levels, and discontinue unacceptable ones. While not mandatory, drafting an AI policy helps establish guidelines on AI usage and literacy within an organization. As additional European Union AI Act obligations take effect in August 2025, organizations should remain vigilant and seek professional guidance when needed.