Is Your Business ‘Providing’ or ‘Deploying’ an AI system?

The EU AI Act distinguishes between the obligations on AI providers and AI deployers.

Provider

If your business develops and markets an AI system, it is likely a provider. For example, a health-tech business selling a diagnostic imaging tool to healthcare services would be a provider.

Your business can still count as a provider if it originally obtained the AI system from a third-party developer if it makes substantial changes to how the system works or how it is used.

Therefore, your business may be a provider if it is:

• a SaaS AI product developer (including providers of health tech, recruitment tech, fintech and legal tech);

• building a layer on top of existing AI systems; or

• building systems for internal use, e.g. optimisation systems.

Deployer

If your business uses an AI system in any way during its operation, it is likely a deployer. For example, the hospital using the health-tech business’s diagnostic imaging tool would be a deployer.

Therefore, your business may be a deployer if it is:

• using SaaS tools to help with operations;

• using coding tools; or

• using AI to assist with marketing and sales.

Obligations on your business as a deployer centre around your responsible management of an AI system which is ultimately maintained by a third party (the provider).