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AI Act fines and penalties.

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Short answer

AI Act fines go up to EUR 35 million or 7 % of worldwide annual turnover for prohibited practices, EUR 15 million or 3 % for most other obligations including Article 50, and EUR 7.5 million or 1 % for incorrect or misleading information to authorities, whichever is higher; for SMEs and start-ups the lower amount is the cap, and since the 2026 Omnibus the same applies to small mid-caps except for prohibited practices. Providers of general-purpose AI models face Commission fines of up to EUR 15 million or 3 % under Article 101, applicable from 2 August 2026.

Official sources: AI Act, Article 99 (consolidated) · Article 101

Fine ceilings

Maximum administrative fines under the AI Act, consolidated text as at 27 July 2026
InfringementUp to (undertakings: the higher)SMEs and start-upsSmall mid-capsArticle
Prohibited practices (Article 5)EUR 35 000 000 or 7 % of worldwide annual turnoverThe lower of the twoThe higher of the two (no SMC rule)99(3), (6)
Obligations of providers, authorised representatives, importers, distributors, deployers and notified bodies; Article 25 value-chain duties; Article 50 transparencyEUR 15 000 000 or 3 %The lower of the twoThe lower of the two99(4), (6), (6a)
Incorrect, incomplete or misleading information to notified bodies or authoritiesEUR 7 500 000 or 1 %The lower of the twoThe lower of the two99(5), (6), (6a)
Providers of general-purpose AI models (Commission)EUR 15 000 000 or 3 %——101

Turnover is the total worldwide annual turnover for the preceding financial year. The fixed amounts are the ceiling for any offender; the percentages apply where the offender is an undertaking.

Who decides, and what else they can do

Member states lay down the rules on penalties, which may include administrative fines, warnings and non-monetary measures, and must take into account the interests and economic viability of SMEs, start-ups and small mid-caps (Article 99(1), as amended). National market surveillance authorities enforce most rules; the Commission fines providers of general-purpose AI models. Member states report the fines they issue to the Commission every year (Article 99(11)).

How the amount is set

  • Nature, gravity and duration of the infringement, the purpose of the AI system, the number of people affected and the damage (Article 99(7)(a)).
  • Fines already imposed by other authorities for the same infringement or the same conduct ((b), (c)).
  • Size, annual turnover and market share of the operator ((d)).
  • Financial benefit gained or loss avoided, and other aggravating or mitigating factors ((e)).
  • Cooperation with authorities, technical and organisational measures taken, and whether the operator reported the infringement itself ((f) to (h)).
  • Intent or negligence, and action taken to mitigate harm ((i), (j)).

Since when

The penalties chapter has applied since 2 August 2025, Article 101 since 2 August 2026 (Article 113(b)). According to the AI Act Service Desk, the enforcement powers of the AI Office and national authorities for the prohibitions, the transparency requirements and the general-purpose AI rules start to apply on 2 August 2026.

Questions

What is the fine for not labelling AI-generated content?
Article 99(4)(g) puts the Article 50 transparency obligations in the middle tier: up to EUR 15 000 000 or, for an undertaking, 3 % of worldwide annual turnover, whichever is higher. For SMEs, start-ups and small mid-caps, the lower of the two is the cap.
Are small companies exempt from fines?
No, but their ceiling is lower: for SMEs and start-ups every AI Act fine is capped at the lower of the fixed amount and the percentage (Article 99(6)). Member states must also take their interests and economic viability into account (Article 99(1)).

Sources

Last reviewed by Volkan Çatak, Founder, Proofcan.

Not legal advice. This page explains official texts in plain words and links each one; check the sources, or a lawyer, before relying on it for a decision.