The EU AI Act, which entered into force on August 1, 2024, began enforcing prohibitions on certain AI systems from February 2, 2025. Article 5 of the EU AI Act establishes eight categories of prohibit
The EU AI Act, which entered into force on August 1, 2024, began enforcing prohibitions on certain AI systems from February 2, 2025. Article 5 of the EU AI Act establishes eight categories of prohibited AI practices that pose unacceptable risks to fundamental rights and EU values. These prohibitions represent the world’s first comprehensive legal framework banning specific AI applications due to their potential for harm.
Key Takeaways:
- February 2, 2025 marked the first compliance deadline for prohibited AI systems
- Maximum penalties reach €35 million or 7% of worldwide annual turnover, whichever is higher
- Eight distinct categories of AI practices are banned across the EU
- Limited exceptions exist for law enforcement and medical/safety purposes
- The AI Act applies to providers and deployers regardless of their location if AI outputs are used in the EU
Understanding Prohibited AI Systems
Legal Framework and Timeline
The EU AI Act takes a risk-based approach to AI regulation, categorising systems into prohibited, high-risk, and transparency-obligated categories. The prohibited practices under Article 5 are considered harmful and abusive as they contradict Union values, the rule of law, and fundamental rights.
EU AI Act Implementation Timeline
| Date | Applicable Provisions | Description |
|---|---|---|
| August 1, 2024 | Entry into Force | EU AI Act enters into force across all 27 EU Member States |
| February 2, 2025 | Prohibited Systems Ban | Ban on AI systems posing unacceptable risks and introduction of AI literacy requirements |
| August 2, 2025 | Governance & Penalties | Governance rules, GPAI model obligations, and penalty frameworks become effective |
| August 2, 2026 | High-Risk Systems | Most other AI Act obligations become effective, including high-risk system requirements |
| August 2, 2027 | Extended Transition | GPAI models placed on the market before August 2, 2025 must achieve compliance by this date |
Key Definitions
Prohibited AI Practice: An AI system whose placing on the market, putting into service, or use is banned under Article 5 of the EU AI Act due to unacceptable risks to fundamental rights.
AI System: A machine-based system designed to operate with varying levels of autonomy that may exhibit adaptiveness after deployment and infers how to generate outputs from inputs received.
Provider: A natural or legal person, public authority, agency, or other body that develops an AI system or general-purpose AI model or has it developed and places it on the market or puts it into service under its name or trademark.
Deployer: A natural or legal person, public authority, agency, or other body using an AI system under its authority, except where the AI system is used in the course of a personal non-professional activity.
Real-time Remote Biometric Identification: The use of an AI system to identify persons without a significant delay by comparing biometric data from a person present in a publicly accessible space with biometric data contained in a reference database.
The Eight Categories of Prohibited AI Systems
1. Subliminal and Manipulative Techniques
AI systems that deploy subliminal techniques beyond a person’s consciousness or purposefully manipulative or deceptive techniques are prohibited when they materially distort behavior and cause significant harm.
Examples:
- Voice-activated toys that encourage dangerous behavior in children
- AI systems using subliminal audio or visual cues to influence purchasing decisions
- Apps that exploit psychological vulnerabilities to promote addictive behaviors
2. Exploitation of Vulnerabilities
AI systems that exploit vulnerabilities of natural persons due to their age, disability, or specific social or economic situation with the objective of materially distorting their behavior are banned.
Vulnerable Groups Protected:
- Children and elderly individuals
- Persons with disabilities
- Economically disadvantaged populations
- Individuals in specific social situations
3. Social Scoring Systems
AI systems for evaluation or classification of natural persons based on social behavior or personal characteristics are prohibited when leading to detrimental treatment in unrelated contexts.
Prohibited Social Scoring Elements
| Prohibited Element | Description | Examples | Cross-Context Penalties |
|---|---|---|---|
| Detrimental treatment in social contexts unrelated to where data was originally generated | Credit scoring based on social media activity | Up to €35 million or 7% of turnover | |
| Disproportionate Treatment | Treatment unjustified or disproportionate to social behavior or its gravity | Employment restrictions based on minor traffic violations | Up to €35 million or 7% of turnover |
| Comprehensive Profiling | Systematic evaluation of personal characteristics over time | Government citizen scoring systems | Up to €35 million or 7% of turnover |
| Behavioral Prediction | Assessment based on inferred personality traits | Social trust scoring for service access | Up to €35 million or 7% of turnover |
4. Predictive Criminal Risk Assessment
AI systems for making risk assessments to predict criminal behavior based solely on profiling or personality trait assessment are prohibited. However, systems supporting human assessment based on objective, verifiable facts linked to criminal activity are allowed.
5. Facial Recognition Database Expansion
AI systems that create or expand facial recognition databases through untargeted scraping of facial images from the internet or CCTV footage are banned.
Prohibited Activities:
- Scraping social media platforms for facial images
- Harvesting faces from public CCTV systems
- Building databases from internet image searches
- Unauthorised collection from public spaces
6. Emotion Recognition in Workplaces and Schools
AI systems that infer emotions of natural persons in workplace and education institutions are prohibited, except for medical or safety reasons.
Emotion Recognition Restrictions
| Context | Prohibition Status | Permitted Exceptions |
|---|---|---|
| Workplace | Prohibited | Medical or safety reasons only |
| Educational Institutions | Prohibited | Medical or safety reasons only |
| Healthcare Settings | Permitted | When used for medical purposes |
| Safety Applications | Permitted | Driver fatigue detection, safety monitoring |
| Public Spaces | Not specifically regulated under this provision | Subject to other regulations |
7. Biometric Categorisation for Sensitive Attributes
Biometric categorisation systems that categorise individuals based on biometric data to deduce race, political opinions, trade union membership, religious or philosophical beliefs, sex life, or sexual orientation are prohibited.
Prohibited Inferences:
- Racial or ethnic classification
- Political opinion assessment
- Religious belief determination
- Sexual orientation prediction
- Trade union membership identification
8. Real-Time Remote Biometric Identification
Real-time remote biometric identification systems in publicly accessible spaces for law enforcement are generally prohibited, with limited exceptions for specific objectives.
Permitted Exceptions for Real-Time Biometric Identification
| Permitted Objective | Requirements | Safeguards |
|---|---|---|
| Targeted search for trafficking victims | Prior judicial or administrative authorisation | Fundamental rights impact assessment |
| Prevention of imminent threat to life or terrorist attack | Registration in EU database | Temporal, geographic, and personal limitations |
| Identification of criminal suspects for serious offenses | Crimes punishable by at least 4 years of custody | 24-hour authorization deadline in urgent cases |
Legal Requirements and Compliance
Enforcement Timeline
While the prohibited practices took effect on February 2, 2025, the penalty provisions only come into force on August 2, 2025. This creates a transitional period where violations are legally prohibited but formal penalties are not yet applicable.
Penalty Framework
Fines associated with breach of Article 5 may be a maximum of €35 million or 7% of total worldwide annual turnover, whichever is higher.
Compliance Requirements by Actor Type
| Actor Type | Primary Obligations | Timeline | Penalties |
|---|---|---|---|
| AI System Providers | Ensure systems do not involve prohibited AI practices | February 2, 2025 | Up to €35 million or 7% of turnover |
| AI System Deployers | Verify that deployed systems comply with prohibitions | February 2, 2025 | Up to €35 million or 7% of turnover |
| Law Enforcement | Obtain prior authorization for biometric identification | February 2, 2025 | Administrative sanctions |
| Educational Institutions | Avoid using emotion recognition except for medical or safety purposes | February 2, 2025 | Administrative sanctions |
| Employers | Prohibit workplace emotion recognition except for medical or safety purposes | February 2, 2025 | Administrative sanctions |
AI Literacy Requirements
Article 4 requires providers and deployers to take suitable measures ensuring their personnel have sufficient AI literacy to operate AI systems and understand opportunities, risks, and potential harms.
Global Impact and Extraterritorial Application
Territorial Scope
The EU AI Act applies to providers and deployers of AI systems in third countries if the output produced by the AI system is being used in the EU. This extraterritorial application means:
- Non-EU companies providing AI services to EU users must comply
- Cloud-based AI systems used by EU entities are covered
- AI outputs consumed in the EU trigger compliance obligations
- Supply chain partners may need to verify compliance
International Business Implications
Organisations worldwide must assess whether their AI systems:
- Are used by EU-based clients or customers
- Process data of EU residents
- Provide outputs consumed within EU territory
- Fall under any prohibited categories
Recent Developments and Guidelines
European Commission Guidelines
The European Commission published guidelines on prohibited artificial intelligence practices to ensure consistent, effective, and uniform application of the AI Act across the European Union. While these guidelines offer valuable insights into the Commission’s interpretation of the prohibitions, they are non-binding, with authoritative interpretations reserved for the Court of Justice of the European Union (CJEU).
Ongoing Stakeholder Consultation
The European AI Office launched a stakeholder consultation in November 2024 on prohibited practices, with responses informing preparation of European Commission guidelines on the definition of AI systems and prohibited practices.
Industry-Specific Impacts
Technology Sector
- Social media platforms must review recommendation algorithms for manipulative techniques
- Dating apps cannot use AI to exploit emotional vulnerabilities
- Gaming companies must avoid systems that manipulate user behaviour through subliminal techniques
Financial Services
- Credit scoring systems cannot use social media data for cross-context evaluation
- Insurance companies cannot use AI to predict criminal behavior for risk assessment
- Banks must avoid emotion recognition in customer service applications
Healthcare and Education
- Medical institutions can use emotion recognition for legitimate medical purposes
- Schools cannot deploy emotion recognition for behavioral monitoring
- Educational technology must avoid exploiting student vulnerabilities
Law Enforcement
- Police must obtain judicial authorisation for real-time facial recognition
- Predictive policing systems cannot rely solely on personality profiling
- Criminal risk assessments must be based on objective, verifiable facts
Frequently Asked Questions (FAQ)
What are prohibited systems under the EU AI Act?
Prohibited systems under the EU AI Act are eight categories of AI practices banned under Article 5 due to their unacceptable risks to fundamental rights. These include manipulative AI, social scoring systems, predictive criminal risk assessment, facial recognition database expansion, workplace emotion recognition, biometric categorisation for sensitive attributes, and real-time biometric identification in public spaces.
When did the EU AI Act prohibitions take effect?
The prohibitions on AI systems posing unacceptable risks took effect on February 2, 2025. However, penalty provisions for breaches only come into force on August 2, 2025.
Do EU AI Act prohibitions apply to non-EU companies?
Yes, the EU AI Act applies to providers and deployers of AI systems in third countries if the output produced by the AI system is being used in the EU. This means non-EU companies must comply if their AI systems serve EU users or markets.
What are the penalties for using prohibited AI systems?
Fines for violating prohibited AI practices may be a maximum of €35 million or 7% of total worldwide annual turnover, whichever is higher. These represent some of the highest penalties in EU technology regulation.
Are there any exceptions to the prohibited AI systems?
Yes, there are limited exceptions:
- Emotion recognition is permitted for medical or safety reasons
- Real-time biometric identification has exceptions for searching trafficking victims, preventing terrorist attacks, and investigating serious crimes
- Criminal risk assessment systems can support human assessment based on objective, verifiable facts
What is considered a manipulative AI system under the EU AI Act?
Manipulative AI systems are those that deploy subliminal techniques beyond consciousness or purposefully manipulative/deceptive techniques to materially distort behavior and cause significant harm. Examples include voice-activated toys encouraging dangerous behavior or apps exploiting psychological vulnerabilities.
How do social scoring prohibitions work in practice?
Social scoring systems are prohibited when they evaluate persons based on social behaviour or personal characteristics, leading to detrimental treatment in unrelated contexts or disproportionate treatment. This bans comprehensive citisen scoring systems and cross-context penalties.
What constitutes facial recognition database expansion under the prohibition?
Creating or expanding facial recognition databases through untargeted scraping of facial images from the internet or CCTV footage is prohibited. This includes harvesting faces from social media, public cameras, or internet image searches.
Can employers use emotion recognition AI in the workplace?
AI systems that infer emotions in workplace contexts are prohibited, except where intended for medical or safety reasons. This means general employee monitoring through emotion recognition is banned, but safety applications like fatigue detection may be permitted.
What biometric categorisation is prohibited under the EU AI Act?
Biometric categorisation systems that deduce race, political opinions, trade union membership, religious beliefs, sex life, or sexual orientation from biometric data are prohibited. This protects sensitive personal attributes from AI-based inference.
How does the real-time biometric identification prohibition work?
Real-time remote biometric identification in publicly accessible spaces for law enforcement is generally prohibited, with exceptions for searching trafficking victims, preventing imminent threats, and investigating serious crimes. Such use requires prior judicial authorisation, fundamental rights impact assessment, and EU database registration.
What are AI literacy requirements under the EU AI Act?
Providers and deployers must take measures ensuring their personnel have sufficient AI literacy to operate AI systems and understand opportunities, risks, and potential harms. This became effective February 2, 2025.
Are there transitional provisions for existing AI systems?
Providers of GPAI models placed on the EU market before August 2, 2025 have until August 2, 2027 to achieve compliance. However, prohibited practices must be discontinued immediately from February 2, 2025.
How are prohibited AI systems enforced across EU member states?
By August 2, 2025, EU Member States must designate national authorities responsible for AI Act enforcement. The European AI Office and national market surveillance authorities share enforcement responsibilities.
What should companies do to ensure compliance with prohibited systems rules?
Companies should:
- Audit existing AI systems against the eight prohibited categories
- Implement AI literacy programs for personnel
- Establish compliance monitoring processes
- Review AI applications for extraterritorial EU impact
- Prepare for August 2025 penalty enforcement
Final Thoughts
The EU AI Act’s prohibition framework, eProhibited systems under AI Act – prohibited practices under AI Act effective from February 2, 2025, represents the world’s first comprehensive ban on AI practices deemed to pose unacceptable risks. With maximum penalties reaching €35 million or 7% of worldwide turnover, organisations globally must ensure compliance when serving EU markets.
The eight categories of prohibited AI systems address fundamental concerns about AI’s potential to manipulate, exploit, and discriminate. While exceptions exist for legitimate law enforcement, medical, and safety purposes, the default position is prohibition of these high-risk practices.
As European Commission guidelines continue to develop and enforcement mechanisms strengthen, organisations should proactively assess their systems, implement compliance programs, and prepare for the evolving regulatory landscape.
Key Actions for Compliance:
- Conduct immediate audits of AI systems against prohibited categories
- Implement AI literacy training for relevant personnel
- Establish ongoing monitoring for new AI deployments
- Prepare compliance documentation for enforcement authorities
- Monitor European Commission guidelines and member state implementations
The EU AI Act’s prohibited systems framework sets a global precedent for AI governance, emphasising the protection of fundamental rights while enabling beneficial AI innovation. Success requires understanding not just what is prohibited, but why these practices pose unacceptable risks to European values and human dignity.
This article was prepared based on the EU AI Act (Regulation (EU) 2024/1689) and related European Commission guidance. Organisations should consult with legal experts for specific compliance advice.
Sources and Citations:
- EU AI Act Article 5: Prohibited AI Practices
- European Commission Guidelines on Prohibited AI Practices
- EU AI Act Implementation Timeline and Enforcement Framework
Last updated: November 2025
Frequently Asked Questions (FAQ)
The EU AI Act, which entered into force on August 1, 2024, began enforcing prohibitions on certain AI systems from February 2, 2025. Article 5 of the EU AI Act establishes eight categories of prohibited AI practices that pose unacceptable risks to fundamental rights and EU values. These prohibitions represent the world’s first comprehensive legal […]
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