Chapter 01
Why this law exists and who it affects
The EU AI Act was published in the Official Journal of the European Union in July 2024. It is the first binding legal framework in the world that regulates artificial intelligence as a category. Before it, there were guidelines, recommendations, principles from think tanks and government bodies, but nothing with actual teeth. That changed.
The law applies to anyone who develops, deploys, or uses AI systems in the European Union, regardless of where their company is based. If your product reaches EU users, this law applies to you. The European Commission wanted to draw a clear line between AI that is fine to use with minimal oversight and AI that could genuinely harm people, and the regulation reflects that intent throughout.
The regulation was phased in deliberately. Some provisions, particularly around prohibited practices, started applying in August 2024. High-risk system obligations come into full force in August 2026. By then, companies that have been ignoring the regulation will face an uncomfortable scramble, and those that prepared early will have a genuine competitive advantage in markets where trust and accountability matter.
What makes this law unusual is that it is not only about AI companies. If you use a third-party AI model in your product, you have obligations too. The regulation draws a distinction between providers, who build AI systems, and deployers, who put those systems into use. Both categories carry legal responsibility.
