What are the penalties for infringement of the EU AI Act?

Penalties for infringement

Member States will have to lay down effective, proportionate and dissuasive penalties for infringements of the rules for AI systems.
The Regulation sets out thresholds that need to be taken into account:

•  Up to €35m or 7% of the total worldwide annual turnover of the preceding financial year (whichever is higher) for infringements on prohibited practices or non-compliance related to requirements on data;
• Up to €15m or 3% of the total worldwide annual turnover of the preceding financial year for non-compliance with any of the other requirements or obligations of the Regulation;
• Up to €7.5m or 1.5% of the total worldwide annual turnover of the preceding financial year for the supply of incorrect, incomplete or misleading information to notified bodies and national competent authorities in reply to a request;
  For each category of infringement, the threshold would be the lower of the two amounts for SMEs and the higher for other companies.
  The Commission can also enforce the rules on providers of general-purpose AI models by means of fines, taking into account the following threshold:
• Up to €15m or 3% of the total worldwide annual turnover of the preceding financial year for non-compliance with any of the obligations or measures requested by the Commission under the Regulation.
  EU institutions, agencies or bodies are expected to lead by example, which is why they will also be subject to the rules and to possible penalties. The European Data Protection Supervisor will have the power to impose fines on them in case of non-compliance.