Explore the potential fines for violating the EU Artificial Intelligence Act, including the maximum penalty based on global turnover. Ensure your AI systems comply with the regulations to avoid significant financial consequences.

Question

Sanctions for non-compliance with the EU Artificial Intelligence Act (AI Act) could result in a maximum fine of?

A. The higher of up to 10 million Euro or up to 2% of the entity’s total Worldwide Turnover for the preceding financial year.
B. The higher of up to 40 million Euro or up to 8% of the entity’s total worldwide turnover for the preceding financial year.
C. The higher of up to 20 million Euro or up to 4% of the entity’s total worldwide turnover for the preceding financial year.
D. The higher of up to 30 million Euro or up to 6% of the entity’s total worldwide turnover for the preceding financial year.

Answer

C. The higher of up to 20 million Euro or up to 4% of the entity’s total worldwide turnover for the preceding financial year.

Explanation

The AI Act outlines tiered sanctions based on the severity and nature of the infringement. The maximum fine for non-compliance is indeed the higher of up to 20 million Euro or up to 4% of the entity’s total worldwide turnover for the preceding financial year. This penalty applies to infringements of the AI Act’s core prohibitions, data governance rules, and transparency obligations.

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