The European Union has issued its first enforcement actions under the AI Act, fining three companies a combined €47 million for deploying high-risk AI systems without required conformity assessments and transparency measures.
Enforcement Actions
The fines target companies using AI in hiring, credit scoring, and law enforcement — all classified as high-risk under the AI Act.
- A recruitment platform fined €22 million for using AI screening without bias audits or candidate notification
- A fintech company fined €15 million for deploying credit scoring AI without explainability requirements
- A security contractor fined €10 million for facial recognition deployment without data protection impact assessment
Global Ripple Effect
The enforcement actions are being closely watched by regulators worldwide. Companies operating in the EU market are rushing to complete conformity assessments, with compliance consulting firms reporting 400% increases in demand. The AI Act's extraterritorial reach means non-EU companies serving European customers must also comply.
