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The EU Artificial Intelligence Act enters its critical enforcement phase on August 2, 2026, when obligations for high-risk AI systems become fully binding. Under Regulation 2024/1689, AI systems used in employment screening, education access, creditworthiness assessment, insurance pricing, law enforcement, and border management face stringent conformity assessment requirements. A February 2026 readiness report from Vision Compliance found 78% of enterprises remain unprepared for the deadline. Compliance costs for large enterprises are estimated at $8 million to $15 million in initial investment, with annual ongoing costs of $500,000 to $2 million. Non-compliance penalties can reach €35 million or 7% of global annual turnover, whichever is higher. GPAI model obligations already took effect in August 2025, requiring providers like OpenAI, Anthropic, and Google to maintain technical documentation, publish training data summaries, and comply with EU copyright law. Legiscope reported the core details. European AI Act Portal noted additional context. GDPR Register added corroborating details.