From the course: Preparing for the EU AI Act: A Conversation with Jon Adams

Understanding enforcement and penalties

From the course: Preparing for the EU AI Act: A Conversation with Jon Adams

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Understanding enforcement and penalties

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- But the penalties for getting it wrong are really meaningful if, you know, there's a gradated system of penalties, but in some cases they can go up to 7% of global revenue for a major infraction of the law by a large company, which, you know, can add up to a lot of money. - I appreciate you bringing that up because I completely neglected to think about what are the consequences, so I'm really happy you brought that in there. And if there's anything else we should know about, what if companies fall short of these obligations? - Yeah, I mean, like, there's definitely the, I mean, and this is the kind of thing where, again, we don't know exactly how the EUAI office is going to enforce the law, but you could imagine that, I mean obviously, the law calls for the potential for monetary penalties, but there's also things where, you know, certain practices, if they're not in line with the law could be, you know, barred from taking place, right? The European Union could say, or, you know, one of the national level regulators could say, you know, "You have not completed what you need to be doing for purposes of compliance," and so you really cannot deploy this AI or develop this AI, or provide it to the European market, right? And they could take measures, you know, anywhere along that spectrum of trying to bring companies into compliance, to penalizing them for not being in compliance. - That's very interesting. I'm so glad you brought that up.

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