The EU AI Act came into force in 2024 and is being phased in through 2026 and beyond. For most Cyprus SMEs using AI for customer service, sales automation, or administrative tasks, the practical compliance requirements are relatively light: basic transparency obligations, documentation of how AI is used, and ensuring AI systems do not make fully autonomous decisions in high-stakes domains. The Act uses a four-tier risk classification. Prohibited AI (e.g. social scoring systems) is banned entirely. High-risk AI in areas like recruitment screening, credit scoring, and healthcare diagnostics faces strict requirements including conformity assessments and human oversight mandates. Limited-risk AI, which includes most chatbots and automated customer communication tools, requires transparency with users. Minimal-risk AI faces no specific obligations. For the AI employees that ZingZee deploys for customer service and sales, the primary requirement is transparency: customers should know they may be interacting with an automated system. Any business using AI in employment decisions, credit assessment, or healthcare contexts should seek specific legal advice on compliance requirements, as the obligations in those categories are significantly more complex.