Hungary Leads the Way: How the Country is Building Its Framework to Enforce the EU AI Act

As Europe prepares to enforce the EU AI Act—the world’s first comprehensive artificial intelligence law—Hungary has wasted no time laying down its institutional foundation. With the adoption of Act LXXV of 2025 and Government Decree No 344/2025, Hungary is one of the first EU member states to formally establish the authorities and systems needed to supervise AI technologies.

This move signals more than compliance—it’s a statement of intent. Hungary wants to be ready, proactive, and positioned as a serious player in Europe’s fast-evolving AI landscape.

Setting the Stage: Who’s in Charge?

The new framework assigns two key regulatory roles:

• The National Accreditation Authority (Nemzeti Akkreditációs Hatóság) has been named the notifying authority under Article 28 of the EU AI Act. It will handle conformity assessments, approvals, and certification of AI systems before they hit the market.
• The Minister of Enterprise Development (Vállalkozásfejlesztési Miniszter) becomes the AI market surveillance authority under Article 70. This office will monitor compliance, enforce penalties, and oversee risk management for AI deployments.

Together, these institutions form the backbone of Hungary’s domestic AI enforcement structure—ensuring that AI systems operating within its borders meet EU standards of safety, transparency, and accountability.

Wide Jurisdiction, Broad Responsibility

Hungary’s approach is notably comprehensive. The framework doesn’t just apply to companies headquartered in Hungary—it extends to any use of AI system outputs within the country, regardless of where the AI was developed or deployed.

In practical terms, this means that if an AI-generated decision, insight, or product output is used in Hungary, it falls under Hungarian jurisdiction. This bold interpretation reflects how AI’s reach transcends borders—and how regulators intend to match that reach with oversight.

In certain sectors, such as finance, the Hungarian National Bank (Magyar Nemzeti Bank) will act as the market surveillance authority, reflecting the need for sector-specific expertise in managing high-risk AI systems.

Introducing the Hungarian Artificial Intelligence Council

The legislation also creates a new Artificial Intelligence Council, an advisory body bringing together experts from government, academia, and business. Its mission: to guide national AI strategy, foster responsible innovation, and help the country balance economic growth with ethical AI governance.

This council is expected to play a key role in shaping how AI is implemented across industries—serving as both a think tank and a bridge between policy and practice.

What It Means for Businesses

For companies using or providing AI in Hungary, the message is clear: get ready for active enforcement.

Businesses will need to review their AI systems, identify potential high-risk uses, and ensure conformity with the EU AI Act’s requirements—from data governance to transparency documentation. The fact that jurisdiction extends to “AI output” means that even global firms whose systems indirectly affect Hungarian users will need to assess compliance.

Failing to do so could result in fines and operational disruptions once full enforcement begins.

Looking Ahead

Hungary’s early action sets a strong precedent within the EU. By establishing its institutional framework well ahead of the AI Act’s full rollout, it sends a signal to both regulators and innovators: Europe’s AI future will be regulated, but it will also be built with foresight.

For businesses, now is the time to act—conduct internal AI audits, engage with legal experts, and prepare for a new era of accountability. Hungary’s readiness shows that the AI Act is no longer theoretical. It’s here, and it’s reshaping how Europe thinks about the technology of tomorrow.