EU AI Act: New Rules and Penalties Set for High-Risk AI Compliance by 2028

January 14, 2026
EU AI Act: New Rules and Penalties Set for High-Risk AI Compliance by 2028
  • High-risk AI systems remain classified under Annex III with a 24-month transition for legacy systems; the European AI Office will run 85 conformity assessment bodies by 2026 and process about 2,800 annual assessments from roughly 1,900 providers.

  • Bilateral cooperation is accelerating third-country compliance, advancing 12 adequacy decisions and mutual recognition efforts to support GPAI model validations and joint testing across the US, UK, Japan, Canada, and other partners.

  • Transparency rules for general-purpose AI stay in place, with added cybersecurity incident reporting for models above 10^26 FLOPs; these amendments respond to 18 months of enforcement burdens on thousands of SMEs while protecting fundamental rights.

  • Transparency obligations for general-purpose AI demand detailed training data summaries, quality metrics, and systemic risk assessments, with governance prioritizing compute power over other risk indicators.

  • The Commission defends amendments to the EU AI Act, keeping prohibitions on real-time biometric identification in public spaces and preserving a risk-based framework for high-risk AI systems.

  • The implementation timeline maintains phased dates: Annex III high-risk from late 2027, Annex I from mid-2028, GPAI obligations in effect by 2025, and a 36-month transition for substantial modifications to existing deployments.

  • Core prohibitions on real-time biometric identification, social scoring, and manipulative subliminal techniques remain, with targeted law-enforcement exceptions needing judicial authorization; 2,400 deployed systems across 18 member states showed high non-compliance prior to enforcement.

  • CODES OF PRACTICE standardize systemic risk evaluation for GPAI, incorporating thousands of public responses and maintaining compute-related risk thresholds at 10^26 FLOPs, with cybersecurity codes aligned to ENISA timelines.

  • AI Office gains exclusive supervisory power over high-risk systems that integrate general-purpose AI from the same provider, centralizing oversight of AI in Very Large Online Platforms, while regional offices and a Joint Coordination Group oversee cross-border investigations and market surveillance.

  • Market surveillance equips national authorities to issue 30-day information requests and conduct quarterly cross-border deployment investigations, with penalties up to GDPR levels (up to €35 million or 7% of global turnover) for non-compliance.

  • SME-focused simplifications cut technical documentation costs by about 42% for thousands of high-risk deployments, introducing derogations and fast-track conformity assessments to streamline processes for SMEs and innovative deployments.

  • AI-generated content labeling is set to begin by August 2026, with millions of daily interactions automatically labeled and watermarked; workplace emotion recognition requires explicit GDPR-aligned consent.

Summary based on 1 source


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