EU AI Act Countdown: Essential Compliance Requirements Starting August 2025

What Changes on August 2, 2025?

The EU AI Act introduces its first wave of binding obligations, primarily targeting General-Purpose AI (GPAI) models and establishing the foundation for broader AI governance across Europe.

General-Purpose AI Models: The First Priority

A GPAI model is defined as an AI system that displays significant generality and can competently perform a wide range of distinct tasks across various applications. If your model can generate text and/or images using training compute greater than 10^22 floating point operations (FLOP), it's presumed to be a GPAI model under the Act.

The Code of Practice: Your Compliance Roadmap

Released on July 10, 2025, the Code of Practice provides a voluntary but highly recommended framework for GPAI compliance. It's structured around three critical areas:

Systemic Risk Models: Higher Stakes

GPAI models with systemic risk face additional requirements including:

• Advanced Model Evaluation: State-of-the-art testing using standardized protocols
• Adversarial Testing: Documented testing to identify and mitigate systemic risks
• Incident Reporting: Real-time reporting of serious incidents to the AI Office
• Cybersecurity Protection: Adequate security measures for high-risk models

What About Startups?

The EU AI Act includes several provisions specifically designed to support startups and SMEs:

Regulatory Sandboxes

Startups receive priority access to regulatory sandboxes, allowing real-world testing under flexible conditions with no administrative fees. Sandbox participation can serve as evidence of AI Act compliance.

Financial Relief Measures

• Reduced Fees: Conformity assessment fees adjusted based on company size
• Proportionate Penalties: Fines scaled to SME size (though maximum penalties remain at €35M or 7% of global turnover)
• SME Exemptions: Lighter requirements for companies with fewer than 50 employees

Dedicated Support Resources

• Simplified documentation forms for SMEs
• Specialized guidance channels for startup queries
• Tailored AI literacy and compliance training programs
• Dedicated AI service desks in member states

Immediate Action Plan for Startups

1. Conduct a Comprehensive AI Audit

Start with a complete inventory of all AI systems your startup uses or develops. For each system:

• Classify the risk level (minimal, limited, high-risk, unacceptable risk)
• Determine if it qualifies as a GPAI model
• Identify your role: provider, deployer, modifier, or distributor
• Document intended use cases and potential risks

2. Prepare Technical Documentation

Create comprehensive "model cards" that include:

• Model architecture and design decisions
• Training methodologies and datasets used
• Performance metrics and evaluation results
• Known limitations and potential biases
• Intended use cases and deployment guidance

3. Address Copyright Compliance

For any GPAI models, ensure you have:

• Complete documentation of all training data sources
• Legal permissions for copyrighted content
• Filtering systems to avoid unauthorized content
• Attribution systems where required

4. Establish Governance Infrastructure

Implement internal processes including:

• AI literacy training for relevant staff
• Appointed responsible persons for AI compliance
• Incident monitoring and reporting systems
• Regular risk assessment procedures

Looking Ahead: Future Compliance Waves

While August 2025 focuses on GPAI models, additional requirements are coming:

Penalties and Enforcement

The EU AI Act carries significant penalties for non-compliance:

However, enforcement powers don't fully activate until August 2026, providing a crucial preparation window for startups.

Practical Next Steps

1. Assess Your Current State: Use compliance checkers and professional assessments to understand your obligations
2. Prioritize GPAI Models: Focus immediate attention on any general-purpose AI systems
3. Consider Code of Practice: Evaluate signing the voluntary code for the grace period benefits
4. Seek Professional Guidance: Consult AI Act specialists for complex classifications and compliance strategies
5. Monitor National Implementation: Stay updated on member state variations and enforcement approaches

The Bottom Line

The EU AI Act represents a fundamental shift in how AI systems must be developed, deployed, and maintained. While the August 2025 deadline focuses primarily on GPAI models, it marks the beginning of the world's most comprehensive AI regulatory framework.

Startups that proactively embrace compliance will not only avoid penalties but position themselves as trusted, responsible AI developers in an increasingly regulated market. The support measures and grace periods available show that regulators understand the unique challenges facing startups – but these benefits require active engagement with the compliance process.

The countdown has begun. The time for preparation is now.