The EU AI Act (Regulation EU 2024/1689) is the European Union's first comprehensive AI legislation, establishing a risk-based framework to ensure AI systems are safe, transparent and aligned with fundamental rights. The Act categorises AI systems into four risk tiers—from prohibited applications to minimal-risk tools—with compliance requirements scaled accordingly. For high-risk AI systems, organisations must implement robust risk management, human oversight, and transparency measures. With penalties reaching up to 7% of global annual turnover or €35 million, compliance is critical. This report examines the Act's structure, identifies affected organisations, and explores how Human Risk Management helps meet the Act's human oversight requirements.
Three Key Takeaways:
- Risk-Based Regulation with Severe Penalties
AI systems are classified into four risk categories with scaled compliance obligations. Non-compliance can result in fines of up to 7% of global annual turnover or €35 million. - Human Oversight Is Mandatory
Article 14 requires that high-risk AI systems enable human interpretation, intervention and override capabilities—making human competency a regulatory obligation. - Human Risk Management Enables Compliance
Whilst not explicitly mandated, Human Risk Management and Security Awareness Training are essential for meeting the Act's oversight, accountability and risk management requirements.