THE AI ACT: WHAT IT MEANS FOR YOUR BUSINESS

Did you know your business could face fines if it doesn’t comply with the new AI rules? Since February 2025, the AI Act has been in effect, introducing new regulations that impact how businesses use AI. These rules will be enforced in phases, so it’s crucial to understand how they apply to your company, especially if AI is part of your marketing strategy.

In this post, we’ll break down what the AI Act is, how AI risk levels are categorized, and what marketers need to do to stay compliant. 

WHAT IS THE AI ACT?

The AI Act is a European Union law designed to ensure AI is used safely, transparently, and fairly. It applies to businesses using AI for:

  • Marketing (AI-generated ads, content, and customer interactions)
  • Hiring (AI-driven recruitment tools and candidate screening)
  • Customer service (chatbots, automated responses, and support)
  • Decision-making (AI-driven pricing, personalized recommendations, and analytics)

If your business relies on AI for any of these, you need to pay attention.

HOW THE EU CLASSIFIES AI RISK

The AI Act groups AI systems into four risk levels:

  1. Unacceptable risk – Completely banned (e.g., AI used for social scoring, mass surveillance).
  2. High risk – Strict regulations apply (e.g., AI in hiring, financial decisions, healthcare).
  3. Limited risk – Some transparency requirements (e.g., AI chatbots, deepfake detection).
  4. Minimal risk – Low or no regulation needed (e.g., AI for content recommendations, automation).

Your first step is to identify where your AI tools fall within this system and ensure they meet the necessary compliance requirements.

WHAT THE AI ACT MEANS FOR MARKETING

If you use AI-generated content, automated pricing, or AI-driven customer interactions, transparency is now a legal requirement. Here’s what that means in practice:

  • AI-generated content: If AI creates social media posts, blog articles, or ads, your audience should know. Consider adding disclosures where AI is used.
  • AI in customer interactions: Chatbots and automated responses must clearly state when users are interacting with AI and not a human.
  • AI-driven pricing: One of the most important rules under the AI Act is automated pricing transparency. If AI adjusts prices based on factors like demand, user behavior, or location, customers must be informed.

Example:

  • A customer searches for a flight, and the price increases with every search.
  • An online store shows different prices depending on the customer’s location.

If AI is making these decisions without clear disclosure, your business could face penalties.

WHAT YOU NEED TO DO NOW

  1. Audit your AI tools – Identify where and how AI is being used in your business.
  2. Be transparent – Disclose AI-generated content, chat interactions, and pricing decisions.
  3. Follow EU guidelines – Especially if your AI falls into the high-risk category.

NEED HELP NAVIGATING AI COMPLIANCE?

The AI Act is a major shift for businesses using AI, and staying ahead of compliance is key.

Have questions about integrating AI responsibly into your marketing? Contact us or join our AI Act & Strategy Workshop to ensure your business stays compliant and competitive.

How is your business using AI in 2025? Let’s discuss in the comments.

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