! High compliance impact for SMEs
WHAT THE ARTICLE IS ABOUT
Who must comply and where
Article 2 defines the personal and geographic scope of the EU AI Act. It determines which businesses and individuals are legally bound by its requirements, making it one of the most practically important articles for any company assessing its compliance obligations.
WHAT IT SAYS
Four categories in scope — and key exemptions
- The Act applies to providers who place AI systems on the EU market or put them into service in the EU, regardless of where the provider is established
- It applies to deployers of AI systems located within the EU
- It applies to providers and deployers located outside the EU when the output of their AI system is used inside the EU
- Importers and distributors of AI systems are also in scope
- Certain exemptions exist: AI systems used exclusively for military or national security purposes, AI used for scientific research that is not yet deployed, and AI in personal non-professional use are excluded
WHO IS AFFECTED
A wide net — including non-EU companies
- EU-based companies that develop or deploy AI — fully in scope
- Non-EU companies whose AI systems are accessed or used by people in the EU — also in scope
- Importers bringing AI products into the EU market
- Distributors making AI systems available in the EU
- Public authorities using AI systems for service delivery
WHAT IT MEANS FOR SMES
Assume you are in scope unless clearly exempt
- If you are a small business using a US or Asian AI tool to serve EU customers, you are a deployer under this article and have obligations
- If you sell an AI-powered product to EU clients from outside the EU, you are a provider under this article
- The personal non-professional use exemption does not cover business use — even internal business tools are in scope
- Practically speaking: if your business touches the EU market in any way and AI is involved, assume you are in scope and work backwards from there
Related Articles
- Article 1 — Subject Matter (the purpose behind the scope)
- Article 3 — Definitions (what provider, deployer, importer mean precisely)
- Article 25 — Responsibilities along the value chain
