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Overview
For two years, Europe's AI rulebook came with a grace period. On August 2, 2026, that period ended.
The European Commission can now fine the makers of large AI models up to 15 million euros or 3% of global revenue, whichever is larger. Its AI Office can demand training documents, test the models, and order changes. Chatbots must tell users they are machines, and AI-made images, audio, video, and text must be labeled.
Why it matters
Any AI chatbot used in Europe now has to tell you it is not human, and the deepfakes in your feed must carry a label.
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The Commission unit that supervises the makers of large AI models across the EU.
A Brussels trade group that pushed for the AI Act to be simplified and delayed.
Timeline
August 2024 December 2026
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Marking grace period ends
Latest LegalGenerative AI systems already on the market before August 2, 2026 must meet the machine-readable marking requirement by this date.
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Enforcement and transparency duties begin
Today LegalThe AI Office can now investigate model makers and propose fines up to 15 million euros or 3% of global revenue. Chatbots must disclose they are AI, and synthetic content must be labeled.
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Council clears the Digital Omnibus
PolicyThe Council of the EU gives final approval to the amendments, delaying high-risk AI duties to December 2, 2027 while keeping the August 2026 deadlines.
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Commission proposes Digital Omnibus
PolicyBrussels proposes easing and delaying parts of the Act after industry pushback over cost and complexity.
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Model rules apply; code signatories listed
LegalDuties for general-purpose AI providers apply to new models. The Commission publishes the list of firms that signed the voluntary Code of Practice.
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First bans take effect
LegalProhibited AI practices are banned and AI literacy duties begin, the earliest hard deadline under the Act.
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AI Act enters into force
LegalThe EU's Artificial Intelligence Act becomes law, starting a staggered rollout of duties over several years.
Historical Context
2 moments from history that rhyme with this story — and how they unfolded.
GDPR takes effect (2018)
The EU's General Data Protection Regulation began applying across the bloc after a two-year grace period. It set fines up to 4% of global revenue and forced companies worldwide to change how they handle personal data.
Firms rushed to add consent banners and privacy notices, and early enforcement was slow as regulators staffed up.
GDPR became a global template; several countries copied it, and large fines against US tech firms followed years later.
The AI Act follows the same playbook: a grace period, revenue-based fines, and reach far beyond Europe's borders. GDPR's slow start also hints at how AI enforcement may open.
Microsoft EU antitrust fines (2004-2013)
The European Commission fined Microsoft over how it bundled software and shared technical information, with penalties eventually topping 2 billion euros. Brussels ordered product changes for the EU market.
Microsoft appealed, complied in stages, and shipped modified products for Europe.
The case showed Brussels would take on the largest US tech firms and reshape their products to meet EU rules.
It is a reminder that the Commission has both the will and the track record to force changes on dominant American technology companies, the same firms now facing the AI Office.
