PYMNTS.com August 1, 2025
The European Union AI Act applies to all companies, including U.S.-based SMBs, if their AI systems or outputs are accessible by EU citizens, regardless of company size.
SMBs must disclose the use of AI for content creation and assess which risk category they fall under to avoid fines of up to 35 million euros ($40 million) or 7% of annual revenue, whichever is higher.
The AI Act offers some support for SMBs — such as regulatory sandboxes and simplified documentation — but core compliance obligations remain in place.
Small and medium-sized businesses (SMBs) developing or using artificial intelligence (AI) systems must comply with the European Union’s AI Act, even if they are not based in or have a presence in...
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