Understanding High Risk AI Systems Under the EU AI Act

Understanding High Risk AI Systems Under the EU AI Act

The EU AI Act (Regulation 2024/1689) is a landmark regulation that aims to ensure the safe and ethical use of artificial intelligence within the EU. A major aspect of this regulation is the classification of AI systems into different risk categories, with high risk AI systems receiving the most stringent compliance requirements. Understanding these classifications and the associated obligations is crucial for businesses, especially for small and medium-sized enterprises (SMBs) that are increasingly adopting AI technologies.

What Constitutes a High Risk AI System?

According to Article 6 of the EU AI Act, high risk AI systems are defined based on their intended purpose and potential impact on individuals’ rights and safety. These systems include, but are not limited to:

• Biometric identification systems: (e.g., facial recognition)
• Critical infrastructure: (e.g., energy, transport)
• Education and vocational training: (e.g., grading systems)
• Employment: (e.g., recruitment tools)
• Law enforcement: (e.g., predictive policing)
• Health care: (e.g., diagnostic tools)

The classification depends on the context of use and the consequences of the AI system’s decisions, as detailed in Annex III of the regulation. This means that even an AI system not inherently high risk could be classified as such based on its application.

Compliance Obligations for High Risk AI Systems

For organizations deploying high risk AI systems, the EU AI Act imposes several obligations to ensure compliance. Here are some of the key requirements:

#### 1. Risk Management System

Article 9 of the Act necessitates that organizations establish a risk management system. This system should identify, assess, and mitigate risks associated with the AI system throughout its lifecycle.

#### 2. Data Governance

High risk AI systems must be trained on high-quality datasets. Article 10 outlines the need for proper data governance, ensuring that data used is relevant, representative, and free from biases that could skew results.

#### 3. Transparency and Explainability

Article 13 emphasizes the importance of transparency. Organizations must provide clear information about how the AI system functions, including its capabilities and limitations. This is essential for building trust with users and regulators.

#### 4. Human Oversight

Article 14 mandates that high risk AI systems incorporate effective human oversight mechanisms. This means that there should always be a human in the loop to intervene if necessary, ensuring safety and ethical use.

#### 5. Post-Market Monitoring

Once a high risk AI system is deployed, companies must continuously monitor its performance and impact. Article 15 requires organizations to assess and report any significant issues that arise post-deployment.

Steps for SMBs to Ensure Compliance

For SMBs, navigating the intricacies of the EU AI Act can be daunting, but taking proactive steps can simplify the process. Here’s a practical checklist to help your organization comply with high risk AI requirements:

• Identify: whether your AI systems fall into the high risk category.
• Create a risk management plan: that addresses the unique risks associated with your AI applications.
• Conduct a data audit: to ensure the datasets used are high-quality and representative.
• Implement transparency measures: by documenting how your AI systems operate and making this information accessible to users.
• Establish a human oversight protocol: to ensure that decisions made by AI systems can be reviewed and overridden if necessary.
• Set up a monitoring system: to continuously assess the performance and impact of your AI systems.

The Importance of Training and Awareness

Beyond the technical measures, it’s crucial for SMBs to foster a culture of compliance and awareness among their teams. Regular training sessions focusing on the implications of the EU AI Act and related compliance requirements can help your team understand their roles in maintaining compliance.

How AI-Act.Click Can Help

Navigating the compliance landscape of the EU AI Act can be complex, especially for SMBs with limited resources. AI-Act.Click offers tools and resources designed to help organizations assess their AI systems against the regulatory requirements effectively. With our platform, you can:

• Conduct compliance checks to identify areas of non-conformity.
• Access templates and frameworks to build your risk management system.
• Stay updated on any changes in regulations affecting your AI systems.

FAQ

Q1: What happens if my organization fails to comply with the EU AI Act?

Non-compliance can lead to significant penalties, including fines up to 6% of your company’s annual global turnover or €30 million, whichever is higher.

Q2: Can I appeal a classification of my AI system as high risk?

While the classification is based on regulatory criteria, your organization can provide evidence to demonstrate that your system does not pose significant risks to rights or safety, which may lead to a re-evaluation.

Q3: Are there resources available to help understand the EU AI Act requirements?

Yes, numerous resources are available, including official EU publications, compliance guides, and platforms like AI-Act.Click that offer tailored assistance for navigating these complexities.

By taking the necessary steps to understand and comply with the EU AI Act, particularly regarding high risk AI systems, SMBs can not only avoid penalties but also foster trust and safety in their AI deployments.