What penalties can be imposed for non-compliance with the EU AI Act regarding prohibited AI practices?

Prepare for the IAPP AI Governance Test with our study tools, including flashcards and multiple-choice questions. Each question comes with helpful hints and explanations to boost your readiness.

The correct answer reflects the substantial penalties associated with non-compliance with the EU AI Act, particularly regarding prohibited AI practices. Under the Act, violations related to high-risk AI systems and especially prohibited practices can incur significant fines. The specified penalties are designed to ensure that organizations take compliance seriously, safeguarding public interests and maintaining ethical standards in AI deployment.

The rationale for imposing penalties of up to €30 million or 6% of the total worldwide annual turnover is to deter negligent practices among AI developers and users, compelling them to prioritize transparency, accountability, and risk management in their AI technologies. The severity of these fines underscores the EU's commitment to enforcing regulations and protecting fundamental rights in the realm of AI.

Misunderstandings in the context of other options may arise from different interpretations of compliance weightage across various regulations, but the specific thresholds set in the EU AI Act reflect a stringent approach to governance that is consistent with the broader regulatory landscape.

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