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The EU AI act in a nutshell for SMBs

In this video, we'll break down everything you need to know about the EU AI Act.



The crux of the Act is its risk-based approach, focusing not on the models themselves but on their use cases. It's about the objectives you aim to achieve with AI rather than the tools you use.


The European Union identifies four risk categories: unacceptable risks, which are outright banned; high risks, subject to stringent regulation; low risks, with minimal rules; and a category that, while not regulated, is recommended for voluntary reporting.

Let's dive into examples:


  • Unacceptable Risk: Biometric identification in public spaces is a no-go.

  • High Risk: This isn't about prohibition but ensuring transparency and documentation. Examples include safety-critical industries like car manufacturing or airlines, but also broader applications in HR, credit scoring, and education, where AI's decision can significantly impact individuals' access to opportunities and services. The key here is ensuring human oversight and administrative diligence.

  • Low Risk: Think chatbots or watermarks on deepfake videos. Minimal requirements are set, like disclosing AI interaction to users.

Most AI uses will likely fall under low risk or voluntary transparency. Yet, it's vital to know where you stand.


Lastly, there's buzz around general-purpose AI models like GPT-4 and Gemini, focusing on regulating the creators for transparency. However, for most businesses using these models, the regulations may not apply directly.


We hope this summary gives you a clear overview of the EU AI Act. For detailed legal advice, consult a professional.


Cheers, Rick


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