EU AI Act Penalties and Enforcement: What to Expect in 2026

With the EU AI Act now in force, 2026 marks the year when enforcement begins in earnest. Organizations need to understand the penalty structure and prepare for regulatory scrutiny.

Penalty Structure Overview

The EU AI Act establishes a tiered penalty system based on the severity of violations:

Violation Type	Maximum Fine	% of Global Turnover
Prohibited AI practices	€35 million	7%
High-risk AI violations	€15 million	3%
Incorrect information to authorities	€7.5 million	1.5%

For companies, the penalty is the higher of the fixed amount or the percentage of global annual turnover from the preceding financial year.

Enforcement Timeline

The phased enforcement approach means different provisions become enforceable at different times:

Already Enforceable (6 months after entry)

• Prohibited AI systems - Social scoring, manipulative AI, certain biometric systems
• Violations can already result in the maximum €35M / 7% penalties

Enforceable February 2025 (12 months)

• GPAI model obligations - General-purpose AI requirements
• Governance structures - AI Office, national authorities

Enforceable August 2025 (24 months)

• High-risk AI requirements - Full compliance obligations
• Transparency requirements - Disclosure obligations

Enforceable August 2027 (36 months)

• Annex I systems - AI in regulated products (machinery, medical devices)

National Enforcement Authorities

Each EU member state must designate:

Market Surveillance Authorities

• Primary enforcement body
• Power to investigate complaints
• Can request documentation and access
• Authority to order corrective actions

Notifying Authorities

• Designate conformity assessment bodies
• Oversee certification processes
• Ensure assessment quality

Enforcement Powers

Authorities have extensive powers to investigate and enforce:

Investigation Powers

• Access to AI systems and documentation
• Request information from providers and deployers
• Conduct on-site inspections
• Test AI systems for compliance

Corrective Measures

• Order modifications to AI systems
• Require withdrawal from market
• Mandate recalls of non-compliant systems
• Impose temporary or permanent bans

Publication of Decisions

• Authorities may publish findings
• Naming and shaming for serious violations
• Public database of enforcement actions

Factors Affecting Penalties

When determining fines, authorities consider:

Aggravating Factors

• Intentional or negligent violations
• Duration of the infringement
• Number of persons affected
• History of previous violations
• Financial benefits gained

Mitigating Factors

• Good faith compliance efforts
• Cooperation with authorities
• Voluntary remediation
• First-time violation
• Prompt notification of issues

SME Considerations

The regulation provides some relief for smaller organizations:

Organization Size	Penalty Calculation
SMEs	Proportionate to size and economic capacity
Startups	Reduced fines for first violations
Non-profits	Consideration of limited resources

However, this does not exempt SMEs from compliance obligations—only from the maximum penalty levels.

Cross-Border Enforcement

For organizations operating across multiple EU countries:

Lead Authority Principle

• Main establishment determines lead authority
• Coordination between national authorities
• Mutual assistance mechanisms

EU AI Office Role

• Coordinates cross-border cases
• Develops enforcement guidelines
• Handles GPAI model enforcement directly

Preparing for Enforcement

Organizations should take proactive steps:

1. Conduct AI Inventory

Identify all AI systems and their risk classification:

• Map AI systems to EU AI Act categories
• Document intended purposes and contexts
• Assess which systems are in scope

2. Implement Compliance Framework

Establish governance structures:

• Designate AI compliance officers
• Create internal policies and procedures
• Establish reporting mechanisms

3. Document Everything

Maintain comprehensive records:

• Risk assessments and mitigation measures
• Technical documentation
• Human oversight procedures
• Audit logs and monitoring data

4. Prepare for Inspections

Be ready for regulatory scrutiny:

• Organize documentation for easy access
• Train staff on inspection procedures
• Establish communication protocols

Real-World Enforcement Examples

While the EU AI Act is new, we can learn from GDPR enforcement patterns:

Pattern	GDPR Experience	AI Act Expectation
Initial focus	High-profile cases	Same expected approach
Complaint-driven	Many investigations from complaints	Whistleblowing will drive cases
Cross-border cases	Complex coordination	Similar challenges expected
Fine escalation	Penalties increased over time	Expect same trajectory

How Metrica.uno Helps

Our platform prepares you for enforcement by:

1. Risk classification - Automatically categorize your AI systems
2. Gap analysis - Identify compliance issues before regulators do
3. Documentation - Generate audit-ready reports
4. Continuous monitoring - Track compliance status over time
5. Evidence management - Organize proof of compliance efforts

Conclusion

The EU AI Act’s enforcement phase is here. Organizations that have prepared will face minimal disruption, while those who have delayed compliance risk significant penalties and operational disruptions.

The time to act is now—not when enforcement actions begin making headlines.

Further Reading

• EU AI Act Official Text
• European Commission AI Act FAQ
• White & Case: EU AI Act Becomes Law
• European AI Office