Exam CIPP-E topic 1 question 232 discussion

Non-compliance with the prohibition of the AI practices referred to in Article 5 shall be subject to administrative fines of up to 35 000 000 EUR or, if the offender is an undertaking, up to 7 % of its total worldwide annual turnover for the preceding financial year, whichever is higher. Art. 99 AI Act https://www.europarl.europa.eu/pdfs/news/expert/2023/12/press_release/20231206IPR15699/20231206IPR15699_en.pdf

The correct answer is: **B. The higher of up to 40 million Euro or up to 8% of the entity's total worldwide turnover for the preceding financial year.** ### Explanation: Under the EU Artificial Intelligence Act, the maximum fine for non-compliance is set at the higher of up to €40 million or up to 8% of the entity's total worldwide annual turnover for the preceding financial year. This high level of fine is intended to enforce stringent compliance with AI regulations, especially for cases involving high-risk AI systems that could impact fundamental rights or safety.

Outdated , Non-compliance with certain AI practices can result in fines up to 35 million EUR or 7% of a company's annual turnover. Other violations can result in fines up to 15 million EUR or 3% of a company's annual turnover

This question is outdated. The fines in the new Act is 35 million EUR or 7% of worldwide revenue whichever is higher.

The previous approach suggests that D is the right answer, but as per 2024 I think that these answers are pretty much outdated.