Scenario:A European AI technology company was found to be non-compliant with certain provisions of the...

The correct answer isB. The EU AI Act assigns atiered penalty systembased on the severity of the violation. A breach ofobligations related to high-risk AI systemsfalls into the mid-tier category, triggering fines of €15 million or 3% of annual global turnover.

From the AIGP ILT Guide – EU AI Act Module:

“Providers of high-risk AI systems must comply with strict documentation, testing, monitoring, and registration obligations. Breaches of these result in significant fines of up to €15 million or 3% of turnover.”

AI Governance in Practice Report 2025 supports this:

“Non-compliance with obligations under Title III (high-risk systems) leads to financial penalties under Article 71(3) of the EU AI Act.”

Note: Thehighest penalty (€35 million or 7%)applies toprohibited AI uses, not to obligations for high-risk systems.

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