The AI Act classifies systems by risk: prohibited practices, high-risk systems subject to substantial requirements, limited-risk systems with transparency obligations, and minimal-risk systems. Obligations phase in over several years.
It applies extraterritorially to providers placing systems on the EU market.
Alternative Names:
European Union AI Act, EU Artificial Intelligence Act
Why it Matters?
The extraterritorial scope means U.S. legal technology vendors serving European clients face obligations regardless of where they operate. Systems used in the administration of justice fall within the high-risk category, which carries requirements for risk management, data governance, documentation, human oversight, and accuracy. For firms, the practical relevance is asking vendors whether their compliance program addresses the Act if any European work is involved.
Frequently Confused with
Related terms
Frequently asked questions
Does the EU AI Act apply to U.S. vendors?
Are legal AI systems high-risk?
