Ban on unacceptable AI practices in the EU

Effective from 2 February 2025, certain provisions of the European Union Artificial Intelligence Act (the AI Act) have established a list of unacceptable practices involving the use of artificial intelligence (AI) tools and prohibited their application.

The requirements laid down in the AI Act apply to providers and developers of AI systems that operate in the European Union market or that offer AI solutions that may impact those residing in the European Union.

Please be advised that Ukrainian companies falling under the above criteria are also required to comply with the AI Act.

In particular, from 2 February 2025, the Act prohibits the following AI practices:

1. Manipulation of people or exploitation of vulnerabilities of certain people
2. Violation of private life and other fundamental human rights
3. Those that conflict with the EU values

Among the systems that use prohibited practices are:

• Scraping and recognition of images, emotions and biometric data of individuals without their consent, for example: recognizing and monitoring employees’ emotions in the workplace to impact their productivity; predicting the commitment of a crime by a person based on their personality traits; inferring people’s political and religious opinions based on their images, etc.
• Social scoring
• Exploitation of vulnerabilities of people of certain age, social status, etc., for example: manipulative targeting of advertising on children, the elderly, or people in a certain emotional state, in order to stimulate them to buy products they do not need

Exceptions to this list include some systems in the health and safety sector (e.g., the search for missing persons, suspects of grave crimes; counterterrorism).

For all other AI systems, the new regulation will enter into force gradually over the next three years.

Violation of the AI Act’s requirements entails a fine of up to €35 million or up to 7% of global annual turnover of the group of companies.

Our publication offers ideas and practical steps for companies to navigate these regulatory changes.

Should you have any questions regarding the use of AI in Ukraine and the European Union, we will be glad to help.

^{We continue to monitor how the regulation on new technologies is evolving. Our team will continue to share useful information with you.}

^{Comments provided by Deloitte experts herein are for information purpose only and should not be used without an in-depth expert analysis on a case-by-case basis.}

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