Glossary — Business and law
AI Act
The AI Act is a European Union regulation that classifies uses of artificial intelligence by risk level and imposes obligations on the higher-risk ones.
2 tokensAIAct
Simply put#
The regulation does not ban AI. It asks what you are using it for. The greater the potential harm to a person, the more requirements apply — documentation, human oversight, transparency.
Example#
An AI that recommends a film and an AI that decides a loan application are very different things to the regulation, even if a technically similar model sits behind both.
Why it matters to you#
Most everyday uses are low risk. But where AI touches hiring, credit, education or healthcare, review the requirements before you build rather than after.