AI Regulation – the “downstream provider”

The AI Regulation?
Oh, that doesn’t affect us, does it?

Unfortunately, this is often a misjudgement, because what we are currently seeing in the market – namely the integration of AI functionality into existing software – can quickly become a problem.

According to the AI Regulation, every system manufacturer that integrates Chat GPT into its software, for example, becomes a “downstream provider” (section 3, paragraph 68) and is therefore automatically subject to the obligations of the AI Regulation.

And this happens faster than you think: even a simple, purchased chatbot or a translation function via the Chat GPT API makes you a “downstream provider”. And we are currently finding such use cases almost everywhere!

Damn… so this does affect us after all!
And now?

Well, now you actually have to carry out a conformity assessment for your system and the downstream system. This must be documented and in most cases also means that you have to implement a series of measures (e.g. transparency obligation, documentation, monitoring, risk assessment, etc.).

This also includes measures that must be publicly visible (e.g. transparency), similar to the implementation of the GDPR or cookie notices. I would therefore not be surprised if we soon see the next wave of warnings coming our way.

So it’s best not to let this become a problem in the first place…

#itsachverständigesindcoolSLW Streitz Liesegang Wagenpfeil & Partner

P.S..yes, I deliberately said “𝘗𝘳𝘰𝘣𝘭𝘦𝘮” here and not “𝘏𝘦𝘳𝘢𝘶𝘴𝘧𝘰𝘳𝘥𝘦𝘳𝘶𝘯𝘨” (bad “no-go” in manager-speak – I know), but what needs to be done is clear and not a big challenge. However, the issue quickly becomes a problem if nothing is done… hence “𝘗𝘳𝘰𝘣𝘭𝘦𝘮”…