Is My AI System in Scope?
Before determining what the EU AI Act requires of you, you need to answer a prior question: does it apply at all? This guide explains the Art. 3(1) definition of an “AI system,” the geographic reach of the Act under Art. 2, what definitively falls outside scope, and walks you through the four-question scope checklist.
Definition
Art. 3(1)
Geographic scope
Art. 2
Prohibitions in force
2 Feb 2025
Full enforcement
2 Aug 2026
What is an “AI System” under Art. 3(1)?
Art. 3(1) — Legal definition
“AI system” means a machine-based system that is designed to operate with varying levels of autonomy and that may exhibit adaptiveness after deployment, and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, recommendations, decisions, or other outputs that can influence physical or virtual environments.
Three core elements
- Machine-based — software or hardware system, not a human
- Infers — derives outputs from inputs, not purely executes fixed rules
- Influences — outputs affect physical or virtual environments
Covered output types
- Predictions (e.g. churn likelihood)
- Recommendations (e.g. product suggestions)
- Decisions (e.g. loan approval)
- Generated content (e.g. text, images, code)
- Classifications (e.g. risk tier assignment)
Included techniques
- Machine learning (supervised, unsupervised, reinforcement)
- Deep learning & neural networks
- Logic & knowledge-based approaches
- Statistical approaches (in decision-making context)
- Search and optimisation methods
Geographic Scope — When Non-EU Companies Must Comply
The EU AI Act has extraterritorial reach similar to the GDPR. Under Art. 2, it applies to any entity that meets one of three connection tests — even if that entity has no establishment, office, or employees in the EU.
Art. 2(1)(a)
Provider in EU market
You place an AI system on the EU market or put it into service in the EU. Applies regardless of where you are established.
Art. 2(1)(b)
Deployer in EU
You are a deployer of AI systems located in the EU. Deployers operating AI systems — even built by others — are in scope.
Art. 2(1)(c)
Output used in EU
Your AI system's outputs (decisions, content, recommendations) are used in the EU. A non-EU company whose AI affects EU persons is in scope.
What is NOT an AI System
These categories are definitively outside the Art. 3(1) definition. If your system falls here, no EU AI Act obligations apply. Document your reasoning in case of regulatory scrutiny.
| Category | Examples |
|---|---|
| Rule-based systems | Decision trees, lookup tables, hard-coded if/else logic, business rules engines with no learning component. |
| Simple automation | Robotic process automation (RPA) that follows fixed scripts, workflow automation, macros, scheduled jobs. |
| Traditional search engines | Keyword-based search indexes, SQL queries, database lookups, pattern matching via regex. |
| Spreadsheet models | Excel models, financial calculators, actuarial tables, formula-based forecasting with no ML component. |
| Classical statistical methods | Linear regression used as a pure statistical reporting tool (not for automated decision-making), frequency analysis. |
Enforcement Timeline — When Rules Apply
Art. 5 prohibited AI practices become enforceable. Six categories of AI are banned outright across the EU.
General-purpose AI model obligations (Chapter V), AI Office authority, and national competent authority designation requirements apply.
Full obligations for high-risk AI systems listed in Annex III: risk management, technical documentation, conformity assessment, CE marking.
AI systems that are safety components of products regulated under Annex I sectoral legislation (machinery, medical devices, vehicles, etc.) must comply.
The Four-Question Scope Checklist
Work through these four questions in order. A “No” at any stage may take you out of scope. If you reach the end without a disqualifying “No,” the Act applies to your system.
Is it an AI system under Art. 3(1)?
The system must be machine-based, use at least one of: machine learning (including deep learning), logic/knowledge-based approaches, or statistical approaches. It must infer from inputs how to generate outputs such as predictions, recommendations, decisions, or content. Pure rule-based or deterministic systems are not AI systems.
If YES
Continue to question 2.
If NO
Out of scope. No EU AI Act obligations apply. Document your reasoning.
Is it placed on the EU market or put into service in the EU?
Under Art. 2(1)(a), the Act applies to providers that place AI systems on the EU market or put them into service in the EU — regardless of whether the provider is established in the EU. A US startup selling a SaaS AI tool to EU customers is in scope.
If YES
Continue to question 3.
If NO
Likely out of scope — but check question 3 for output-based territorial reach.
Does it serve EU users or affect persons in the EU?
Under Art. 2(1)(c), the Act applies where the output of the AI system is used in the EU. A non-EU company whose AI system's outputs (e.g. decisions, recommendations) affect people located in the EU must comply, even without a physical EU presence.
If YES
In scope — continue to question 4.
If NO
Likely out of scope if the system has no connection to the EU.
Is there an applicable exemption?
Check Art. 2(3) (military/national security), Art. 2(6) (pure scientific research), Art. 2(7) (personal non-professional use), and Art. 53(2) (open-source GPAI model). Exemptions are narrow and must be applied carefully — when in doubt, assume in scope.
If YES
Out of scope or reduced obligations apply. Document the specific exemption.
If NO
In scope. Proceed to classify risk level and identify obligations.
Exemptions in Detail
Military & national security
AI systems developed or used exclusively for military, defence, or national security purposes of Member States are entirely excluded from the Act, regardless of which entity operates them.
Scientific research & development
AI systems developed or used solely for scientific research and development purposes are excluded. The exclusion does not apply once a system is placed on the market or put into service beyond the research context.
Personal non-professional use
AI systems used by natural persons in the course of a purely personal non-professional activity are outside scope. Using a personal AI assistant for private tasks does not attract obligations.
Third-country public authorities
AI systems used by public authorities of a third country or by international organisations, where acting under an international agreement for law enforcement or judicial cooperation with the EU.
Open-source model exception
Providers of general-purpose AI models that release weights under a free and open-source licence are exempt from most GPAI obligations — unless the model presents systemic risk (Art. 51). Transparency and copyright obligations still apply.
Open-Source Model Exception — Important Nuances
Under Art. 53(2), providers of GPAI models released under a free and open-source licence are exempt from most Chapter V obligations — specifically the technical documentation, copyright policy summary, and capability evaluation requirements.
Exceptions to the exception: The open-source exemption does NOT apply if the model presents systemic risk under Art. 51 (broadly: models trained with more than 10^25 FLOPs). Even open-source systemic-risk models must comply with Art. 55 obligations.
Transparency obligations remain: Even exempt open-source models must still publish information about training data for copyright compliance purposes (Art. 53(1)(d)).
If Your System is In Scope — Next Steps
Classify risk level
Use the Risk Classifier to determine if your system is prohibited, high-risk, limited-risk, or minimal-risk.
SME? Read the SME guide
If you have fewer than 250 employees, proportionality provisions reduce your compliance burden significantly.
Build your checklist
Generate a tailored compliance checklist based on your system type and risk level.
Check your AI system's risk tier
Once you know you're in scope, the Risk Classifier tells you exactly which obligations apply.
Classify your AI system →