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AI Act Sanctions and Fines: What Companies Risk

Up to 35 million euros or 7% of global turnover: discover the penalties under the AI Act and how to avoid them.

Author Marie Dupont
March 10, 2026 9 min read
AI Act Sanctions and Fines: What Companies Risk
AI Act sanctions: a progressive fine regime

The AI Act does not merely set rules: it provides an arsenal of sanctions among the most severe in European law. With fines of up to 35 million euros or 7% of global turnover, the European legislator sends a clear signal: AI compliance is not optional.

The AI Act sanctions regime

The AI Act establishes a three-tier fine system, modelled on the GDPR but with even higher amounts for the most serious infringements. The principle of proportionality applies: the severity of the sanction depends on the nature of the violation.

The sanctions are designed to be dissuasive while remaining proportionate to the size of the company. SMEs and startups benefit from reduced caps, but are not exempt from liability.

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Fine schedule by type of violation

The AI Act distinguishes three levels of sanctions based on the severity of the infringement:

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For SMEs and startups, the amounts are adjusted: the higher of the fixed cap and the percentage of turnover applies, but mitigating circumstances are provided for.

Who is responsible? Provider vs deployer

The AI Act clearly distinguishes responsibilities between the different actors in the AI value chain:

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Supervisory authorities and enforcement

Each Member State must designate a national supervisory authority. At European level, the European AI Office coordinates enforcement of the regulation.

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How to avoid sanctions

The best protection is anticipation. Here are the priority actions:

  1. Carry out an inventory of all your AI systems and classify them by risk level
  2. Put in place the required technical documentation for each high-risk system
  3. Appoint an AI compliance officer
  4. Train teams on transparency and oversight obligations
  5. Conduct regular compliance audits using specialised tools

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Assess your exposure to sanctions

Our audit identifies your non-compliance risks and helps you put a remediation plan in place.

Start free audit

The AI Act sanctions are among the most severe in European law. But they are also designed to be proportionate and predictable. By preparing now, you turn this regulatory risk into a competitive advantage.

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