What could non-compliance cost you?
Estimate Article 99 maximum ceilings for non-SME undertakings. These are statutory caps, not predicted penalties or minimum fines. SME caps use the lower amount and are not calculated here.
Tier 1
Article 5
Prohibited AI practices
€35,000,000 or 7% of global annual revenue
Whichever is higher
Tier 2
Article 99(4)
Listed operator and transparency obligations
€15,000,000 or 3% of global annual revenue
Whichever is higher
Tier 3
Article 99(5)
Incorrect information to authorities
€7,500,000 or 1% of global annual revenue
Whichever is higher
Context
For comparison
GDPR's largest fine was EUR 1.2B (Meta, 2023). EU AI Act fines can exceed this for large organizations operating prohibited AI systems.
Staged application dates
Article 50 transparency duties generally apply from August 2, 2026. Chapter III Sections 1-3 apply to Annex III high-risk systems from December 2, 2027 and Annex I high-risk products from August 2, 2028 under Regulation (EU) 2026/1744. Review applicability and transitional provisions.
SMEs and startups
Under Article 99(6), SMEs, including startups, use the lower applicable percentage or fixed monetary cap. For EUR 5M annual turnover, the Tier 1 SME ceiling is EUR 350,000, not EUR 35M. Actual penalties depend on the circumstances.