AI compliance: The Danish Agency for Digitization has sent a bill for consultation to supplement the regulation of the AI regulation in Denmark.
The AI Regulation will enter into force on a rolling basis until August 2, 2026. However, the provisions on prohibited AI systems have already entered into force on February 2, 2025, while the provisions on general purpose AI systems, among others, will enter into force on August 2, 2025.
The bill is based on the AI Regulation's requirement for Member States to designate competent authorities through national legislation to monitor and ensure compliance with the AI Regulation.
The bill proposes that the Danish Agency for Digitization and the Danish Data Protection Agency will be appointed as the Danish surveillance authorities to ensure compliance with the provisions of the AI Regulation.
In addition, it follows from the bill that the Danish Agency for Digitization and the Danish Data Protection Agency, as part of this task, are authorized to control and sanction companies to the extent necessary to ensure compliance with the AI Regulation.
As part of this task, the Danish Agency for Digitization and the Danish Data Protection Agency will, among other things, have the opportunity to:
- require the provision of any information deemed necessary to ensure compliance with the AI Regulation,
- require access to all commercial premises for the purpose of inspection visits and carry out necessary technical examinations in connection therewith,
- Issue injunctions and prohibitions,
- Publish decisions in cases of prohibited AI practices,
- report violations of penal provisions of the AI Regulation to the police and, after consultation with the Ministry of Justice, impose fines in special circumstances.
With these provisions, there are possibilities for control and sanctions in the same way as we know it from GDPR.
It follows from the AI Regulation that violation of the prohibition of prohibited AI practices may result in fines of up to EUR 35,000,000 or, if the offender is a company, up to 7% of the company's total worldwide annual turnover in the previous financial year, whichever is greater.
In addition, it follows from the AI Regulation that a breach of the prohibition on providing false information may result in fines of up to EUR 7,500,000 or, if the offender is a company, up to 1% of its total worldwide annual turnover in the previous financial year, whichever is greater.
Finally, the bill provides for a statute of limitations of five years from the time when the illegal AI solution is no longer in use in the company or the violation of the illegal practice ceases.
It is expected that further supplementary legislative proposals will be presented later on regarding the parts of the AI Regulation that have not yet entered into force.
At CLEMENS, we follow the field closely and provide regular updates with relevant news about developments in the field.
If you have any questions about the article, the AI regulation or how the rules may affect your business, or if you need help creating an overview of the legal challenges related to the development or use of AI, you are always welcome to reach out to our compliance team.
