Most SME SaaS products that add AI features start in the limited-risk tier. The cheapest win is Article 50 transparency — disclose that users interact with AI. Review your risk tier before the heavier 2027 deadlines arrive.
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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