Imagine waking up to a world where artificial intelligence is not just a tool, but a regulated entity. This is the reality that dawned on Europe just a few days ago, on February 2, 2025, with the phased implementation of the European Union's Artificial Intelligence Act, or the EU AI Act.

As I sit here, sipping my coffee and reflecting on the past week, it's clear that this legislation marks a significant shift in how AI is perceived and used. The EU AI Act is designed to make AI safer and more secure for public and commercial use, ensuring it remains under human control and mitigating its risks. It categorizes AI systems into four risk levels: minimal, limited, high, and unacceptable.

The first phase of implementation, which kicked in on February 2, bans AI systems that pose unacceptable risks. These include manipulative AI, exploitative AI, social scoring systems, predictive policing, facial recognition databases, emotion inference, biometric categorization, and real-time biometric identification systems. Organizations operating in the European market must now ensure adequate AI literacy among employees involved in the use and deployment of AI systems.

But what does this mean for businesses and individuals? For companies like those in Spain, which has established a dedicated AI agency, the Spanish AI Supervisory Agency, to oversee compliance, it means a centralized approach to enforcement. For others, it may mean navigating a complex web of national enforcement regimes combined with EU-level enforcement.

The EU AI Act also introduces a new European Artificial Intelligence Board to coordinate enforcement actions across member states. However, unlike other EU digital regulations, it does not provide a one-stop-shop mechanism for cross-border enforcement. This means companies may need to assess a myriad of local laws to understand their exposure to national regulators and risks of sanctions.

Looking ahead, the next phases of implementation will bring additional obligations. For providers of general-purpose AI models, this includes adhering to a Code of Practice and facing potential fines of up to EUR 15 million or three percent of worldwide annual turnover for noncompliance. High-risk AI systems will be subject to stricter regulations starting from August 2026 and August 2027.

As I finish my coffee, it's clear that the EU AI Act is not just a piece of legislation; it's a call to action. It's a reminder that as AI continues to evolve, so must our approach to its governance. The future of AI is not just about technology; it's about trust, transparency, and responsibility. And as of February 2, 2025, Europe has taken a significant step towards ensuring that future.