EU Artificial Intelligence Act

Definition

Regulation (EU) 2024/1689, the world's first comprehensive legal framework for artificial intelligence. The AI Act establishes a risk-based classification system: prohibited AI practices (Article 5), high-risk AI systems subject to extensive obligations (Articles 6-49), limited-risk AI with transparency requirements (Article 50), and minimal-risk AI that is unregulated. For financial services, AI systems used in credit scoring, insurance pricing, and certain other decisions affecting natural persons are classified as high-risk under Annex III. High-risk obligations — including risk management, data governance, transparency, human oversight, and conformity assessment — apply from 2 August 2026.