EU AI Act: Regulators Issue First-Ever Fines Against Big Tech for Non-Compliance

The European AI Office has issued its first formal enforcement actions under the EU Artificial Intelligence Act, marking a watershed moment in global AI regulation. Two of the world's largest technology companies — whose names have not yet been officially disclosed pending appeal — have each received preliminary fines exceeding €10 million for operating high-risk AI systems in the EU without completing required conformity assessments or appointing designated human overseers.

The fines relate specifically to AI systems used in recruitment screening and credit scoring — two application areas explicitly categorised as "high-risk" under Annex III of the Act. Regulators found that both companies had deployed automated decision-making tools without maintaining the required technical documentation, impact assessments, or logging mechanisms that would allow EU citizens to contest AI-generated decisions affecting them.

Brando Benifei, a key architect of the legislation in the European Parliament, called the enforcement actions "a signal that the AI Act has teeth." He added that the Office is reviewing dozens more complaints related to AI-generated content, biometric surveillance, and emotion recognition systems — all of which face strict or outright bans under the Act's provisions.

The AI industry has reacted with a mix of caution and criticism. Several trade groups argue that the conformity assessment requirements are unclear and that the six-month implementation window given to companies was insufficient. The European Commission has indicated it will publish updated compliance guidance within 60 days.

For Indian and global AI firms operating in Europe, the actions are a wake-up call. Compliance experts advise companies to immediately audit all EU-facing AI products, classify their risk levels, and appoint a dedicated EU AI compliance officer — a role that was largely theoretical until this week.