The European Regulation on Artificial Intelligence, or E.U. AI Act (Act), approved in March as the world’s first comprehensive AI law, will have a global impact, applying to any companies whose AI interacts with Europeans. It promises regulation proportionate to the risks of each AI use, but companies worry that the Act’s layers of red tape will hold back innovation. This second article in a three-part series that answers common questions about the Act addresses the implications of the Act’s risk tiers and required assessments, including how it treats internal uses of AI. See part one in the series: “Reach and Unique Requirements” (May 22, 2024).