Art.112

Article 112 – Evaluation and Review

General SME Relevant ~2 min read · 459 words

Article 112 requires the Commission to regularly evaluate and report on the EU AI Act — assessing whether it is working as intended, whether the penalty levels are appropriate, and whether adjustments are needed. It is the Act’s built-in self-assessment mechanism, ensuring that Europe’s first comprehensive AI regulation can be updated based on evidence of how it is actually working in practice.

✓ Low compliance impact for SMEs

WHAT THE ARTICLE IS ABOUT

The Commission’s ongoing obligation to review and adapt the Act

Article 112 establishes the evaluation and review framework for the EU AI Act. It requires the Commission to conduct regular evaluations — assessing the regulation’s effectiveness, the appropriateness of its penalties, and whether its scope needs adjustment as AI technology evolves. It is the mechanism through which the Act is designed to remain fit for purpose over time.

WHAT IT SAYS

Regular evaluation reports with specific review obligations

By 2 August 2029 and every four years thereafter, the Commission must submit a report to the European Parliament and Council evaluating the implementation and application of the Act
The evaluation must assess whether the Act is achieving its objectives, whether it creates unnecessary barriers to innovation, whether the penalty levels are appropriate, and whether the scope requires adjustment
A specific report on the supervision and governance of general-purpose AI models must be submitted by 2 August 2028
By 2 August 2028, the Commission must evaluate the impact of the Act on the uptake of AI by SMEs
The Commission must specifically assess whether the list of prohibited AI practices in Article 5 should be amended
Evaluation reports must take into account positions of the European Parliament, the Council, the AI Board, and relevant stakeholders including SMEs

WHO IS AFFECTED

All stakeholders — the evaluation shapes future AI regulation

The Commission which must conduct and publish evaluations
The European Parliament and Council which receive evaluation reports
All businesses operating under the Act — evaluation findings may lead to regulatory changes
SMEs specifically — there is a dedicated evaluation of the Act’s impact on SME AI adoption

WHAT IT MEANS FOR SMES

Engage with the evaluation process to shape the Act’s evolution

The dedicated evaluation of the Act’s impact on SME AI uptake by August 2028 is significant — it creates an evidence-based mechanism for reducing burdens if the Act is found to disproportionately disadvantage small businesses
Engage with consultations during the evaluation process — the Commission must take stakeholder input into account, and SME voices are specifically required to be heard
The four-year evaluation cycle means the Act is subject to regular review — compliance strategies should acknowledge that requirements may change, and flexibility is valuable
The review of prohibited practices means Article 5 may be expanded over time — monitor evaluation findings to anticipate future prohibition changes
Industry associations representing SMEs should actively contribute to evaluation consultations — the 2028 SME-specific review is an opportunity to present evidence of compliance burden and request targeted adjustments

Article 5 — Prohibited practices (specifically subject to review under this article)
Article 62 — SME measures (the SME support framework whose effectiveness is evaluated)
Article 113 — Entry into force (the application dates that determine when evaluation deadlines run)
Article 97 — Delegated acts (the mechanism through which evaluation findings can lead to regulatory changes)

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