Irish businesses developing or using Artificial Intelligence (AI) face approaching deadlines and obligations under the EU’s AI Act, as set out in a new report from Mason Hayes & Curran.

The business-law firm’s 2025 Artificial Intelligence Mid-Year Review outlines the latest legal developments affecting AI systems.

New legal obligations for providers of general-purpose AI models will apply from August.

The AI Act’s penalty regime takes effect at the same time, allowing maximum fines of up to €35m or 7% of global turnover.

Organisations already face strict new standards, including a ban on specific AI practices like facial or emotion recognition and social-scoring tools.

Businesses must also provide mandatory AI literacy training to ensure staff understand both the benefits and risks of using or deploying AI technologies.

Brian McElligott, Head of Artificial Intelligence at Mason Hayes & Curran, said: “The shift from policy to compliance is really ramping up.

“We’re advising clients daily on what the AI Act means in practice: where their obligations fall, which systems and models are in scope, and how to document compliance.

“Regulators expect to see evidence, and delaying now could leave organisations exposed once enforcement begins next year.”

The review also examines new guidance from the European Data Protection Board on managing privacy risks in large language models.

It outlines how organisations should assess these systems under GDPR and ensure personal data is handled lawfully.

The 2025 Artificial Intelligence Mid-Year Review is aimed at business and legal leaders, as well as technology compliance professionals, seeking practical guidance on the EU’s expanding AI regulatory framework.