EU AI Act High-Risk Rules Take Effect August 2, 2026: What US Companies Must Do
The European Union's AI Act imposes binding obligations on high-risk AI systems starting August 2, 2026, with penalties reaching €15 million or 3% of global turnover for non-compliance. The law applies extraterritorially, meaning US companies whose products are used by EU residents — even on free tiers — must comply if their systems fall under Annex III. Annex III covers AI applications in areas such as biometrics, employment, education, critical infrastructure, law enforcement, and migration. Companies are advised to prioritize four compliance workstreams: risk management, data governance, technical documentation, and human oversight with transparency measures. Experts stress that firms do not need to achieve perfection by the deadline, but must be able to demonstrate defensible, evidence-backed compliance to regulators.
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