Risk-Based AI Classification Framework

The Framework

The EU AI Act establishes a four-tier classification system that determines what obligations apply to an AI system:

Risk LevelRegulatory ResponseExamples
UnacceptableProhibitedSocial scoring, subliminal manipulation, predictive policing
HighExtensive requirementsMedical devices, employment screening, credit scoring
LimitedTransparency obligationsChatbots, deepfakes, emotion recognition
MinimalNo obligationsSpam filters, video game AI

Why It Matters

This framework operationalizes a key principle: regulation should be proportional to risk. Not all AI requires the same governance. The framework allows innovation in low-risk applications while concentrating oversight resources on systems that can cause significant harm.

The classification also determines who is regulated and how. High-risk providers face pre-market conformity assessment. Low-risk providers face nothing. The regulatory burden scales with potential impact.

How It Works

Unacceptable Risk (Prohibited): Eight categories where no deployment is acceptable. Identified by the nature of the use, not the technology.

High Risk: Two pathways:

  1. AI embedded in products already covered by EU product safety legislation (medical devices, vehicles, toys)
  2. AI used in specific high-stakes domains listed in Annex III (biometrics, critical infrastructure, employment, education, law enforcement, border control, justice administration)

Limited Risk: Systems interacting with humans or generating synthetic content. Must disclose AI involvement.

Minimal Risk: Everything else. No specific obligations under the Act.

Limitations

The framework assumes risks can be pre-identified by use case. It may struggle with:

  • General-purpose systems applied in unforeseen ways
  • Emergent risks from capability advances
  • Context-dependent harm that doesn’t map cleanly to categories

The GPAI provisions (Chapter 5) partially address the first concern, but tensions remain between static classification and dynamic capability.

Related: 05-atom—provider-deployer-distinction, 01-atom—fundamental-rights-impact-assessment