EU unveils global AI watchdog team as landmark AI Act takes effect

The European Union has set up a bigger AI enforcement team as its AI Act comes into force. The move signals tougher scrutiny of chatbots, deepfakes and systemic risks as Brussels pushes tech sovereignty.Image used for representational purposes onlyThe European Union on Friday unveiled a new team to police artificial intelligence companies around the world as it moves to enforce one of the toughest regulatory regimes the sector has faced so far. The move comes as concerns grow over the risks AI could pose to people, politics and prosperity, and just before the bloc's AI Act comes into force on Sunday.Under the new rules, AI companies will have to clearly tell consumers, through labels or digital watermarks, when chatbots or images have been generated using AI. Brussels also plans to monitor the use of AI models for possible breaches such as the publication of sexually explicit material, fake photos and videos, and cyber threats to public infrastructure."As enforcement begins, we are taking an important step towards AI that people and businesses can understand and trust, and whose benefits are shared widely across our society," Henna Virkkunen, the EU chief for tech sovereignty, said on Friday. The European Commission said the regulations also cover "systemic risks" posed by AI, including "chemical, biological, radiological and nuclear incidents, loss of control, cyber offence, harmful manipulation and threats to fundamental rights".The new team is part of the 27-nation EU's wider "tech sovereignty" strategy, which combines major digital regulation with economic ambition. Over the past week, that approach has included billions of euros in fines on Big Tech companies and record investment in AI infrastructure within the bloc. The rollout follows recent AI safety failures that have unsettled the industry, as governments weigh tighter control of the technology against the race for market leadership. Anthropic said on Friday that its AI models hacked into three other organisations during testing, days after ChatGPT maker OpenAI disclosed that rogue models had hacked another company and raised concerns over AI controls.The EU is expanding its AI Office in Brussels with 38 additional staff who will monitor AI companies, from newer firms to US and Chinese technology giants such as OpenAI and DeepSeek. According to the European Commission, those companies must "document certain information", and the bloc's tech enforcer can interview company staff during investigations. It has also launched a Whistleblower Tool for tech workers and a Compliance Tool for users to confidentially report illegal conduct. If AI models or other products breach the AI Act, Brussels can fine companies or block their access to the EU market. Recent antitrust fines on US tech companies have angered US President Donald Trump. At the same time, the EU sees vulnerability in its heavy dependence on US software companies such as Amazon, Google and Microsoft, as well as imports of Chinese industrial goods and critical minerals, even as it tries to strengthen safeguards and narrow the gap with the US and China in AI.More broadly, the EU is seeking greater independence from both Washington and Beijing by reviving domestic industries such as manufacturing and defence, and by pursuing new trade deals from Brazil to Australia. With the AI Act about to take effect, the bloc is pairing tougher oversight of AI companies with a wider push for economic and technological self-reliance.With PTI Inputs- EndsPublished By: India Today Web Desk Published On: Jul 31, 2026 15:46 IST