EU AI Act risk classification chart for AI systems

EU AI Act: Why You Can’t Ignore It (Even If You’re Not in the EU)

July 15, 20252 min read

Still think the EU AI Act doesn’t apply to you because you’re not in Europe?
That’s cute.

Sorry to tell you, but if your AI tools touch EU data, serve EU customers, or were trained using public datasets that include EU citizens, congrats, you’re on the hook.
And the clock’s ticking:
August 2025 is when the real enforcement begins.

(And the teeth in this regulation have a really mean bite.)

Here’s What That Means:

  • You need to classify your AI tools by risk

  • You need to document how your models work

  • You need to disclose when and how AI is being used

And NO, a half-written usage policy won’t cut it - not for this - not anymore.

What the EU AI Act Actually Classifies as High Risk

The Act sorts AI systems into four categories:

1. Minimal Risk

  • Spam filters, basic automation, AI-enhanced search

  • No specific obligations

2. Limited Risk

  • AI that interacts with humans (like chatbots)

  • Must disclose its AI, ensure transparency, and allow users to opt out when possible

3. High Risk

Systems used for:

  • Credit scoring and financial decision-making

  • Employee hiring or evaluation

  • Healthcare diagnostics and treatment

  • Education assessments

  • Critical infrastructure operations

These must meet strict requirements for:

  • Risk management

  • Data quality

  • Transparency

  • Logging and traceability

  • Human oversight

  • Post-market monitoring

4. Prohibited

  • AI used for social scoring (like China-style surveillance)

  • Real-time biometric tracking in public spaces (in most cases)

  • Anything that manipulates behavior using subliminal techniques

If you’re using AI in hiring, healthcare, finance, or core business operations, you’re likely in the High Risk category. And that means you’re subject to the Act, even if you’re based in the U.S.

Why This Matters - No Matter What Size Business You Run

Getting ahead of this doesn’t just keep you compliant, it positions you as the grown-up in a room full of leaders playing AI roulette with major fines.

3 Moves to Make Now

1. Audit What You’re Using
If you don’t know what models your team is using? That’s problem #1.
Use my
AI Audit Readiness Checklist to fix that fast.

2. Update Your Governance Plan
You do have one, right?
If not, start with the
AI Governance Plan Checklist - it’s the framework you should’ve had yesterday.

3. Train Your People
AI compliance isn’t just a legal issue. Your team needs to know what’s allowed, what’s risky, and what to flag before things go sideways.
To evaluate their true readiness, use the
AI Readiness Snapshot.

Ready to Go from Checklist to Competitive Advantage?”

Let’s turn these insights into action. If you're serious about transforming AI from liability to leadership move, I’ll show you what comes next.

👉 [Schedule Your AI Strategy Briefing]

30 minutes. No fluff. Just clarity on where you stand - and what high-performing companies do differently.

Kristi Perdue, CEO, CAIO, AlterBridge Strategies

Kristi Perdue

Kristi Perdue, CEO, CAIO, AlterBridge Strategies

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