EU AI Act
The EU AI Act (Regulation (EU) 2024/1689) is the world’s first comprehensive AI law, using a risk-based approach and applying to any organization — including Canadian exporters — whose AI systems are placed on the market or used in the EU.
Adopted in 2024 and in force since August 2024, the EU AI Act classifies AI systems by risk: unacceptable (banned), high-risk (strict obligations), limited (transparency duties), and minimal. Obligations phase in over several years, with rules for prohibited practices and general-purpose AI arriving first.
The law is extraterritorial: a Canadian company that sells software with AI features into the EU, or whose AI output is used there, can fall within scope regardless of where it is headquartered. Penalties are significant — up to €35 million or 7% of global annual turnover, whichever is higher, for the most serious breaches.
See the European Commission's regulatory framework page for the authoritative text and timeline.
