Legislative update: What does Act LXXV of 2025, Decree 344 of the Supreme Court and Regulation (EU) 2024/1689 mean?

Act LXXV of 2025 and Decree 344 of the Hungarian Parliament, published in issue 127 of the Hungarian Gazette, create a new situation in the domestic legal system - especially for organizations that develop or use artificial intelligence systems.

Why is this change serious?

The EU-level framework, Regulation (EU) 2024/1689 (the so-called AI Act), clearly defines prohibited practices and obligations for risky AI applications, as well as the level of sanctions that can be imposed for violations. For the most serious violations, the regulation provides for a maximum administrative fine of HUF 13.3 billion or - in the case of a business - 7% of the company's total annual global turnover (whichever is higher). In addition, for other, equally serious violations, fines of up to HUF 5.7 billion or 3% can be imposed.

What do we recommend for those affected?

1. Identification: List which systems can be considered AI or contain an AI component.

2. Risk assessment: Determine the risk category of the system based on the EU regulation and Hungarian implementation.

3. Documentation & records: Prepare detailed technical documentation, declarations of conformity and audit trails.

4. Contracts & Partners: Update our supplier and customer contracts in accordance with legal requirements.

5. Training: All relevant staff should be trained on their obligations and internal procedures.

The application of the rules is not optional, and the level of fines (up to 13.3 billion HUF or 7% of global sales) shows that failure to comply poses a serious financial risk. We recommend that companies start compliance measures as soon as possible, without delay.