EU gains new powers to enforce AI rules, putting Milan's tech sector on notice

The European Union gained the power to enforce its landmark artificial intelligence rules from Sunday, according to The Local Italy, with regulators now able to hit companies breaking the law with fines. The move marks a significant step in the bloc's effort to regulate the fast-moving technology sector.

The new enforcement powers apply to the most powerful AI systems, targeting general-purpose models that could pose systemic risks. Companies found in breach of the rules face substantial penalties, though the wire did not specify the exact fine amounts or which entities would be prioritised for enforcement.

For Milan, the timing is notable: the city has positioned itself as a hub for AI-driven design, fintech and fashion technology, with startups and established firms alike integrating machine learning into everything from supply chain management to personalised retail. The new rules will require these companies to document their AI systems' risk assessments and ensure transparency, adding a compliance layer that smaller firms may find burdensome.