Understanding High-Risk AI Classification Under the EU AI Act

The EU AI Act establishes the world's first comprehensive regulatory framework for artificial intelligence. At its core is a risk-based classification system that determines the obligations placed on providers, deployers, and importers of AI systems.

What makes a system high-risk?

Classification depends on two factors: the intended purpose of the system and the domain in which it operates. A system used for credit scoring in financial services falls squarely into Annex III Category 5(b). The key insight is that classification is purpose-driven, not technology-driven.

The compliance burden

High-risk AI systems carry the heaviest compliance requirements: conformity assessments, risk management systems, data governance, transparency obligations, and human oversight. Providers must establish a quality management system and maintain technical documentation throughout the system's lifecycle.

Practical first steps

Start with an inventory of all AI systems in use. For each, determine the intended purpose and deployment context. Map these against the Annex III categories. The result is your risk classification register, the foundation for all subsequent compliance activity.