EU AI Act Compliance Guide for SMEs
The EU AI Act is the world's first comprehensive AI regulation, and its requirements are rapidly coming into force. For small and medium enterprises, understanding your obligations is critical — penalties can reach up to €35 million or 7% of global annual turnover.
Key Deadlines You Need to Know
The AI Act follows a phased rollout. Prohibited AI practices have been enforceable since February 2025. GPAI model transparency requirements became mandatory in August 2025. The most significant deadline — full compliance for high-risk AI systems — arrives in August 2026.
Given that compliance typically takes 8-14 months, companies starting now are already working against a tight timeline.
Is Your AI System High-Risk?
The AI Act classifies AI systems into risk tiers. High-risk systems — those used in areas like employment decisions, credit scoring, healthcare diagnostics, or biometric identification — face the strictest requirements including conformity assessments, risk management systems, and ongoing monitoring.
If your product or service uses AI in any of the areas listed in Annex III of the regulation, you likely need to prepare for high-risk compliance.
What Compliance Looks Like
For high-risk systems, compliance involves establishing a risk management system, implementing data governance practices, maintaining technical documentation, enabling human oversight, and ensuring accuracy and robustness. You will also need to register your system in the EU database.
Getting Expert Help
Most SMEs do not have in-house expertise for AI Act compliance. Working with a qualified consultant can help you classify your systems, identify gaps, and build a compliance roadmap within your budget.