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AI literacy under Article 4 of the EU AI Act: what a small business must do for staff who use AI

Last updated 22 Oct 2026 · India

Short answer. Article 4 of the AI Act (Regulation (EU) 2024/1689) has applied since 2 February 2025. Providers and deployers of AI systems, which includes a small business using AI tools at work, must take measures to ensure, to their best extent, a sufficient level of AI literacy of their staff and other people using AI on their behalf, taking into account their knowledge, experience and the context of use. There is no fixed format or certificate; keep a short, proportionate plan and a record of what you did.

A proportionate SME plan

  1. List the AI tools staff use (chatbots, writing aids, note-takers, scoring tools).
  2. For each, note who uses it and the main risks (wrong answers, personal data, bias).
  3. Give a short briefing per role: what the tool is for, what not to put in, how to check output.
  4. Record date, attendees and material; repeat when tools or uses change.

What to cover

TopicExample
What AI is and is notOutputs can be wrong; verify facts and figures
DataNo client personal data in tools without a lawful basis and contract
Your role under the ActDeployer vs provider; disclosure duties for chatbots and AI content
EscalationWho to tell when AI output causes a problem

The Commission's Digital Omnibus proposal (November 2025) proposed changing how Article 4 works. Until any change is adopted and in force, read Article 4 as written and check the Commission's AI literacy Q&A for updates.

Common mistakes

Frequently asked questions

When did Article 4 AI literacy start to apply?

On 2 February 2025, together with the prohibited practices in Article 5.

Does AI literacy apply to small businesses that only use AI tools?

Yes. Article 4 covers deployers as well as providers, taking into account context and proportionality.

Is a certificate required for AI literacy?

No. The AI Act does not require a certificate; the Commission's Q&A describes a flexible, context-based approach.

What should an SME keep as evidence?

A short record of the AI tools used, the briefings given, dates and attendees.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 22 Oct 2026.

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