Definition of an AI system, at the core of regulation

AI systems are defined as (i) machine-based systems, (ii) designed to operate with varying levels of autonomy, (iii) that may exhibit adaptiveness after deployment, and (iv) that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments. 

Scope of application

The AI Act applies to different actors in the chain of AI systems:

Providers placing on the market or putting into service AI systems in the EU, irrespective of whether those providers are established or located within the EU or in a third country. 

  • A provider is the one who develops an AI system or that has an AI system developed and places it on the market or puts the AI system into service under its own name or trademark, whether for payment or free of charge. 

Deployers of AI systems that have their place of establishment or are located within the EU. 

  • A deployer is the one who uses an AI system under its authority, except where the AI system is used in the course of a personal non-professional activity.

Providers and deployers of AI systems that have their place of establishment or are located in a third country, where the output produced by the AI system is used in the EU.

Importers and distributors of AI systems.

  • An importer is the one who places on the EU market an AI system that bears the name or trademark of a natural or legal person established in a third country. 
  • A distributor is the actor person in the supply chain, other than the provider or the importer, that makes an AI system available on the EU market. 

Product manufacturers placing on the market or putting into service an AI system together with their product and under their own name or trademark; 

Authorised representatives of providers that are not established in the EU; 

Affected persons that are located in the EU.


It does not apply to purely personal/private use of AI systems.

Gradual entry into force

The AI Act is generally set to apply per 2 August 2026.

A first set of provisions (general provisions and prohibited practices – see below) is however applicable per 2 February 2025. 

A next set of provisions will become applicable per 2 August 2025. Other provisions will apply either per 2 August 2026 or 2 August 2027.

What changes per 2 February 2025?

i.   Prohibited AI practices

In response to the unacceptable risks posed by certain AI systems, the AI Act lists a number of “prohibited practices” which must be removed from the market and/or discontinued per 2 February 2025.

Unlike other provisions of the AI Act, this requirement applies universally to all operators, irrespective of their role or identity. Consequently, it extends to various activities, including the placing on the market, putting into service or use of AI systems that, for example :  

    • Infer emotions on the workplace or in education institutions (except where this is intended for medical or safety reasons);
    • Employ subliminal, manipulative or deceptive techniques;
    • Exploit vulnerabilities of individuals based on age, disability or specific social or economic situation;
    • Facilitate social scoring by both public and private actors;
    • Create or expand facial recognition databases through indiscriminate scraping of facial images from the internet or CCTV footage;
    • Categorise individuals based on biometric data to infer sensitive information such as race, political opinions, trade union membership, religious or philosophical beliefs, sex life, or sexual orientation.
    • Assess or predict the likelihood of an individual committing a criminal offense solely on the basis of profiling or personality assessments. 

ii.  Employee awareness

Starting 2 February 2025, employers qualifying as providers and/or deployers of AI systems must ensure their staff - and anyone working with AI systems on their behalf - possess a sufficient level of AI literacy. 

While the legislation does not provide explicit guidelines or further directives, AI literacy can be understood as the requirement for all staff to possess a sufficient level of education in the comprehension, application, oversight, and critical evaluation of AI applications. It is essential to consider the technical expertise, experience, education, and training of the individuals involved, as well as the specific context in which the AI systems will be deployed, and the impact on the individuals or groups affected by these systems.

Key strategies to enhance AI literacy within your organisation are:

    • Identify the skills and knowledge required to support AI initiatives.
    • Evaluate existing AI knowledge, skills, and identify any gaps. 
    • Develop tailored training programs, at various levels. This should include foundational AI literacy for all staff (covering AI policy, ethics, and security), as well as advanced training for technical roles. Ensure that learnings are ongoing and evolve with the latest advancements in AI; and
    • Developing external partnerships with legal, ethical, and technical AI experts to stay informed on industry standards and emerging best practice. 

Which sanctions for continuing to use prohibited AI systems ?

  • Fines of up to 7% of annual global (group) turnover, or
  • Fixed amounts between EUR 7.5 million and EUR 35 million, depending on the violation and business type.

The provisions on fines will become applicable per 2 August 2025. 

Looking ahead

Stay tuned for further updates on the provisions of the AI Act that will enter into force on 2 August 2025 and gradually thereafter.

Interested in more? Read our article on the adoption of the AI Act (here) or our dedicated article on the impact of AI on financial institutions (here).

Reach out to the contact persons listed below or to your contact person at Loyens & Loeff to learn more.