Does the EU AI Act apply to non-EU companies?
Yes, often. Under Article 2(1) the Act applies to:
- providers placing AI systems or GPAI models on the EU market, wherever they are established;
- deployers established or located in the EU;
- providers and deployers in third countries where the output produced by the AI system is used in the EU.
So an Australian SaaS with EU customers, or one whose AI outputs reach EU users, is likely in scope.
Authorised representative
Non-EU providers of high-risk systems must appoint an EU-established authorised representative by written mandate before making the system available (Art. 22). Non-EU GPAI model providers have a similar duty (Art. 54).
Exclusions
The Act doesn't apply to AI used exclusively for military, defence or national security; to AI developed and used solely for scientific research; or to purely personal, non-professional use (Art. 2).
Penalties
Up to €35m or 7% of worldwide turnover for prohibited practices, and up to €15m or 3% for most other breaches. For SMEs, the lower of the two amounts applies (Art. 99).
Not legal advice. Last reviewed 26 Oct 2026.