Recommendation engines and dynamic-pricing AI are limited-risk. They mostly need transparency — telling users when they are interacting with AI and how their data shapes results. They do not need the heavy documentation that high-risk systems do.
The EU AI Act reaches any company whose AI output is used in the European Union — regardless of where the company is based. If your product has EU users or clients, the rules apply to you. The first question is always the same: which risk tier does your system fall into, and what duties come with that tier?
The Act sorts AI into four tiers: prohibited (banned outright), high-risk (heavy duties), limited-risk (transparency only), and minimal-risk (no mandatory duties). Most software starts in limited or minimal risk. The expensive surprises live in high-risk and prohibited — which is exactly why scanning early matters.
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