JD Supra

Key Provisions of the Draft AI Regulation

With regard to its territorial scope of application, the focal point is whether the impact of the AI system occurs within the EU, regardless of the location of the provider or user. This could lead to a very broad extraterritorial application of the Draft AI Regulation, reaching far beyond the borders of the EU. The Draft AI Regulation will apply to:
– providers that offer or are putting into service AI systems in the EU, regardless of whether the providers are located inside or outside the EU;
– users of AI located in the EU; and
– providers and users located outside the EU, if the output produced by the system is used in the EU

The provider is the person who has developed the AI system. It is important to note that if another person in the distribution chain (importer, distributor, user) (i) puts a high-risk AI system on the market under its
own name or trademark, (ii) modifies the intended purpose of an existing high-risk AI system, or (iii) makes substantial modifications to the AI system, this person will replace the original provider as the “provider”
under the Draft AI Regulation.

Source: JD Supra

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