Artificial intelligence is developing rapidly on a global scale, and keeping up can be challenging. According to PwC, AI is expected to contribute significantly to the global economy by 2030. However, with these major opportunities also come risks — both ethical and technological. For this reason, the EU has introduced the AI Act, which aims to regulate the use of AI.
What is the AI Act?
The AI Act is the EU’s legislation establishing a common regulatory framework for the development and use of artificial intelligence. Its purpose is to ensure that AI is used in a safe, transparent, and responsible manner across all member states.
Why does it matter?
The AI Act applies to everyone working with AI — including companies, developers, suppliers, and users. The regulation is based on a risk‑based approach, where AI systems are classified according to their potential impact.
AI systems are divided into four categories:
Unacceptable risk
Systems that pose a clear threat to citizens’ fundamental rights are prohibited. This includes, for example, social scoring and certain forms of mass surveillance.
High risk
AI used in critical areas such as healthcare, transport, or recruitment is subject to strict requirements for documentation, transparency, and safety.
Limited risk
These systems are subject to transparency requirements — for example, users must be informed when they are interacting with an AI system (such as a chatbot).
Minimal risk
Most AI systems fall into this category and are subject to only limited regulation.
Requirements and sanctions
Companies must ensure that their AI solutions comply with the regulation and that employees possess the necessary competencies. Non‑compliance can result in substantial fines:
Up to €35 million or 7% of global turnover
Up to €15 million or 3%
Up to €7.5 million or 1.5%
The AI Act is the first comprehensive regulation of AI and will have significant implications for businesses in the EU. AI is no longer merely a technological concern, but also a legal and strategic responsibility.
For startups and SMEs, lower fine thresholds apply. Nevertheless, it is strongly recommended to familiarise yourself thoroughly with the legislation before working with AI, as non‑compliance can be costly.
In Denmark, the Danish Agency for Digital Government has been designated as the supervisory authority responsible for enforcing the AI Act. The agency is also responsible for the mandatory assessment of AI systems classified as “high risk” before they may be made available.
How do we approach the AI Act at Kraftvaerk?
At Kraftvaerk, we view the AI Act as an opportunity to create clarity and structure in the use of AI — not merely as a regulatory burden. We help our clients understand how the legislation affects their specific use cases and what is required to comply.
Our approach is based on a risk‑focused assessment, analysing how and where AI is used within the organisation and which categories the solutions fall under. Based on this, we provide guidance on the necessary measures — such as governance, documentation, transparency, and technical controls.
We work pragmatically and with a strong business focus, ensuring that compliance with the AI Act goes beyond a legal exercise and becomes an integrated part of solutions that create real value. Our goal is to enable organisations to realise the potential of AI — responsibly and in full alignment with applicable regulation.
