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The European AI Regulation (AI Act) is the world's first comprehensive law regulating artificial intelligence. It operates on a risk-based approach: the greater the risk posed by an AI system, the stricter the requirements. Some applications are even prohibited. If you use or develop AI, you will have to comply with these rules.
A risk-based approach
The AI Regulation classifies AI systems according to risk. The more a system may affect safety or fundamental rights, the heavier the obligations. This results in roughly four categories: unacceptable risk (prohibited), high risk (strict requirements), limited risk (transparency obligations), and minimal risk (virtually no additional rules).
Prohibited and high-risk AI
AI with an unacceptable risk is prohibited, such as certain forms of manipulation or social scoring. High-risk AI — for example in recruitment, credit assessment, or critical infrastructure — is permitted, but under strict conditions: risk management, data quality, transparency, human oversight, and documentation. Those who offer or use such systems have the most obligations.
Transparency with limited risk
For low-risk AI, transparency obligations primarily apply. Consider chatbots and content generation: users must be able to know that they are interacting with AI or that content was created by AI. Much everyday business AI falls into this or the minimal-risk category.
What does this mean for your business?
Map out which AI you are developing or using and which risk category it falls into. Align your processes, contracts, and information provision accordingly, and take into account the phased implementation of the rules. For AI that processes personal data, also pay attention to the GDPR. In case of doubt, a legal assessment is advisable.
Frequently Asked Questions
Does the AI Regulation also apply to my company?
If you develop, offer, or use AI, you may fall under this. The obligations depend on the risk category of the system.
Which AI is banned?
AI with an unacceptable risk, such as certain manipulation and social scoring, must not be deployed.
What should I do about high-risk AI?
Meet strict requirements regarding risk management, data quality, transparency, human oversight, and documentation.
Is your AI usage legally compliant?
Our legal experts review your AI applications and GDPR aspects and draft appropriate contracts. View our privacyor contract lawteam, or schedule a free consultation.