All of the following are penalties and enforcements outlined in the EU Al Act EXCEPT?
A.
Fines for SMEs and startups will be proportionally capped.
B.
Rules on General Purpose Al will apply after 6 months as a specific provision.
C.
The Al Pact will act as a transitional bridge until the Regulations are fully enacted.
D.
Fines for violations of banned Al applications will be €35 million or 7% global annual turnover (whichever is higher).
The Answer Is:
C
This question includes an explanation.
Explanation:
The EU AI Act outlines specific penalties and enforcement mechanisms to ensure compliance with its regulations. Among these, fines for violations of banned AI applications can be as high as €35 million or 7% of the global annual turnover of the offending organization, whichever is higher. Proportional caps on fines are applied to SMEs and startups to ensure fairness. General Purpose AI rules are to apply after a 6-month period as a specific provision to ensure that stakeholders have adequate time to comply. However, there is no provision for an "AI Pact" acting as a transitional bridge until the regulations are fully enacted, making option C the correct answer.
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