From this moment on, the absence of explicit watermarks on deepfakes or concealing the machine nature of a chatbot has a specific price: a fine of up to €15 million or up to 3% of the company's global annual turnover. This is not a warning, but an active taxation mechanism for non-compliance. The regulator is delivering a direct blow to the unit economics of AI startups and hyperscalers. Implementing filtering and verification modules at the inference stage slows down token delivery speed and requires additional computing power. Safety in Europe is becoming an extremely expensive line item in operational expenditures.
Source: European Commission / The Verge
RegulationEU AI ActComplianceFinesMacroeconomics