EU AI Act
Also called artificial Intelligence Act, AI Act, regulation (EU) 2024/1689
The EU AI Act is the European Union's law on artificial intelligence. It bans certain AI practices, sets strict duties for high-risk systems and requires transparency for chatbots and generated content. It entered into force on 1 August 2024. After a July 2026 amendment, most high-risk duties apply from 2 December 2027.
How it works
The Act sorts AI by risk. Prohibited practices, such as social scoring and manipulative techniques, have been banned since 2 February 2025. General-purpose AI model rules have applied since 2 August 2025. Transparency duties under Article 50 applied from 2 August 2026, with a grace period to 2 December 2026 for marking content from systems already on the market. For financial firms, credit scoring of individuals and risk pricing in life and health insurance are listed as high-risk uses in Annex III.
The Digital Omnibus on AI, Regulation (EU) 2026/1744, entered into force on 27 July 2026. It moved high-risk obligations for Annex III systems to 2 December 2027 and for AI in regulated products to 2 August 2028. Banks using AI for creditworthiness checks must build risk management, data governance, logging and human oversight. Fines reach €35 million or 7% of global turnover for prohibited practices.
The rules
Bans certain AI practices, sets risk management, data, documentation and human oversight duties for high-risk AI, and transparency duties for chatbots and generated content.
Providers and deployers of AI systems placed on the EU market or used in the EUMoves high-risk obligations to 2 December 2027 for Annex III systems and 2 August 2028 for Annex I systems, and adds new prohibited practices.
Providers and deployers of AI systems under the EU AI ActRequires technical documentation, information for downstream providers, a copyright policy and a training-data summary, with extra duties for systemic-risk models.
Providers of general-purpose AI models placed on the EU marketCommon questions
When does the EU AI Act apply to banks?
Prohibitions and general-purpose AI rules already apply. Transparency duties applied from 2 August 2026. High-risk duties for uses such as credit scoring apply from 2 December 2027, after the Digital Omnibus on AI moved the original 2 August 2026 date.
Is the AI Act delay adopted law or a proposal?
It is adopted law. Regulation (EU) 2026/1744, the Digital Omnibus on AI, was published in the Official Journal on 24 July 2026 and entered into force on 27 July 2026.
Which financial services uses are high-risk?
Annex III lists AI used to evaluate the creditworthiness of individuals or set their credit score, and AI used for risk assessment and pricing in life and health insurance. AI used only to detect financial fraud is excluded from the credit scoring category.
Does the EU AI Act apply to firms outside the EU?
Yes. It applies to providers placing AI systems on the EU market and to providers and deployers outside the EU where the system's output is used in the EU.
Our coverage
News and analysis on AI and model risk from RegTech Post.
Read the coverage →RegTech PostEU AI Act: A Global Benchmark for Governing Artificial IntelligenceRead the article →RegTech PostFrom Chatbots to Credit Scoring: Europe Redefines AI RiskRead the article →
