This Policy Paper addresses the policy and regulation of Artificial Intelligence, with a particular focus on the AI Act and the context in Portugal. It includes thorough analyses and clear recommendations on public policies. The authors, André Ilharco and Steffen Hoernig, provide a comprehensive perspective on the impact of AI in society and legislation. The document explores AI’s implications in various sectors, discussing both the challenges and opportunities it presents. It is essential for those looking to understand the intersection of AI technology and public policies in a European and Portuguese context.