The EU AI Act is the European Union’s first-ever legal framework designed specifically to regulate artificial intelligence. Adopted in 2024, it introduces a risk-based approach, classifying AI systems into four categories: minimal, limited, high, and prohibited risk. Its primary aim is to protect fundamental rights, ensure transparency, and promote safe innovation, while preventing harmful or manipulative uses of AI. By setting these rules, the EU seeks to become a global standard-setter for trustworthy AI.
While certain provisions have already taken effect, including general provisions on AI literacy and the prohibition of practices deemed to involve unacceptable risks, the Act will be fully applicable from 2 August 2026. At that point, it will become the world’s first comprehensive law regulating artificial intelligence. For customer care teams, this new regulation means far-reaching changes. Although chatbots, voicebots, or virtual assistants will not be banned, their use will be clearly regulated. The focus lies on transparency, human oversight, and legal safeguards.
AI may support but not decide
In the future, AI systems may support customer service, but may only act independently when decisions have no significant consequences for those affected. In all other cases, a human control instance must be involved. This applies especially to complex or sensitive matters. The so-called “human-in-the-loop” approach becomes mandatory. Customers must always have the option to be transferred from an AI-powered interaction to a human service representative.
If AI systems act without human control or users are not clearly informed about their use, drastic consequences may follow. Violations can be punished with fines of up to 35 million euros or seven per cent of global annual turnover, depending on the severity of the violation and the size of the company (Article 71 ff.).
Transparency is mandatory
Companies must clearly and unambiguously communicate whether a customer is interacting with an AI system or a human. This information must not be hidden or unclearly formulated and must be actively communicated, for example, by text or voice message.
Especially in cases of complaints, sensitive data, or important requests, human escalation options are required by law. This ensures that in critical situations, no automated decisions are taken without human supervision.
As soon as a matter potentially impacts customer rights or is sensitive (for example, complaints, data changes, or applications), a human escalation option must exist. Essentially, this means that fully AI-based customer service without the option to escalate to a human employee is no longer permitted in most cases. Customers must have the option to speak to a human if they wish. Therefore, it is not enough to rely solely on a bot – the option to switch must be actively offered and easily accessible. While such a choice is not mandatory for every standard inquiry (e.g., purely informational standard inquiries), wherever AI interaction may affect rights, interests, or complaints, a human contact person is mandatory.
Classification according to risk levels
The EU AI Act distinguishes four risk levels: minimal risk, limited risk, high risk, and prohibited risk. Most AI systems used in customer service, such as chatbots that answer simple questions or take orders, fall into the category of “limited risk.” However, the actual classification always depends on a case-by-case assessment based on the type of use and impact on user rights. These systems are subject to transparency obligations. Users must be clearly informed that they are interacting with AI. In addition, it must be ensured that a human is available at all times upon request. AI systems with limited risk must not make final decisions that significantly impact user rights.
High-risk AI systems, such as those in banking or loans, in application procedures that significantly impact access to employment (e.g., recruitment) or sensitive health applications, are subject to significantly stricter requirements. These include comprehensive risk analyses, technical documentation, and permanent human supervision. AI systems with prohibited risk, such as those that manipulate or discriminate against people, are completely banned. This differentiated regulation aims to ensure safe, transparent, and responsible AI use in customer service without hindering innovation. It guarantees that customer service AI remains legally compliant while strengthening user trust.
AI and Data Protection go hand in hand
In addition to the provisions of the EU AI Act, the regulations of the General Data Protection Regulation (GDPR) continue to apply. Especially where AI processes personal or sensitive data, both legal frameworks must be considered. This means companies must take not only technical but also organisational measures. All processes must be documented, auditable, and fully GDPR-compliant.
Providers of AI tools in use must be checked to ensure full compliance with European GDPR requirements. This is particularly critical if the provider is not based in Europe (for example, U.S. companies such as OpenAI). Problems can arise here: As long as AI tools are only used as “little helpers” and no sensitive or personal data is processed, the risk is usually manageable. If these services are more closely integrated into core business processes, such as the entire customer service, the risk increases significantly.
If full GDPR compliance is not achieved, high penalties may be imposed in case of violation. In the event of a data protection audit, the relevant business area, such as the entire customer service, may be prohibited by authorities on short notice. The consequences for the company can be serious.
Therefore, clear proof of GDPR compliance must be demanded from external providers (especially those outside the EU). This includes a clearly worded data processing agreement (DPA), information on where and how data is processed and stored, and, if necessary, data storage exclusively within Europe.
Companies should also examine alternatives with guaranteed EU location and full data protection compliance, document internal processes and data flows seamlessly, and train employees in the use of AI tools and sensitive data. Partial knowledge or insufficient examination of the legal situation can quickly lead to considerable risks and costs.
Employee training becomes mandatory
Employees play a central role. Companies are obliged to train their teams in handling AI systems. Customer care employees must understand how the tools work, recognise risks, and know when to intervene. Some companies have already begun integrating this content into their onboarding processes – not only for legal reasons but also to ensure service quality.
To sum up:Â The EU AI Act does not prevent the use of artificial intelligence but establishes clear rules on how AI should be used responsibly and transparently. Companies must now prepare or adapt their systems, processes and teams accordingly by no later than August 2, 2026.
For companies that use AI responsibly, the EU AI Act can become a clear competitive advantage. It builds customer trust and helps avoid costly fines and reputational damage.