The European Union will from Sunday have the power to enforce landmark artificial intelligence rules and fine companies that break the law. In 2024, the EU adopted the "AI Act," which takes a risk-based approach. It bans AI used for predictive policing, emotion recognition in workplaces or schools, and AI that manipulates human behaviour. From Sunday, AI-generated content like deepfakes must be labelled, and firms must ensure chatbots make it clear they are AI. Existing AI systems have until December 2 to adapt, with exemptions for "artistic, creative, satirical, fictional" work. European regulators in the AI Office will enforce rules on the most advanced AI models, testing general-purpose models and demanding access, sometimes before they are placed on the market. The EU can restrict a model's deployment if concerns are not addressed. National authorities will enforce rules for smaller AI systems. Fines for banned practices can reach up to seven percent of a company's annual worldwide turnover or 35 million euros ($40 million), whichever is higher. Other violations can incur fines up to three percent of global annual revenue or 15 million euros. From December, there will be a ban on AI systems generating sexualised deepfakes.