What is high risk in the AI Act?
The AI Act introduces a new way of thinking about technology. It sorts artificial intelligence into different risk levels, with high risk AI systems getting the most attention.
These are the tools that could shape lives in big ways, like hiring employees, grading exams, or running public services. The rules say these systems need extra checks and balances.
They must be transparent, fair, and safe for everyone. If a company builds or uses high risk AI systems, they have to follow strict guidelines. This is meant to protect people from harm and make sure AI works for the good of society.
High risk tools in the AI act framework
It’s important to note that “high-risk” is not the highest level in the AI Act’s framework. There is an even stricter category above it: AI systems that pose an “unacceptable risk.”.
Unacceptable-risk systems are those that manipulate people, discriminate against them, or severely restrict their freedom of choice. Examples include systems used for social scoring based on certain behaviours or personal traits.
Because of this, high-risk systems are not the first or most urgent focus on the AI Act timeline, those unacceptable-risk systems will be addressed first, by banning them entirely.
In summary the AI Act classifies AI systems into four main risk levels:
- Unacceptable risk: AI systems that pose a clear threat to people’s safety, rights, or freedoms (e.g. social scoring, manipulative or discriminatory systems). These are banned.
- High risk: AI systems with a significant impact on people’s lives (e.g. recruitment tools, exam grading, public service decisions). These are heavily regulated and must meet strict requirements.
- Limited risk: AI systems with some potential for harm but lower impact. They must follow transparency obligations, such as informing users that they are interacting with AI.
- Minimal or no risk: Most AI systems, such as spam filters or video game AI, fall into this category. These are largely unregulated under the AI Act.
Which activities are considered high risk in the AI Act?
High-risk AI tools are the technologies that, if they fail or are misused, could have serious consequences for people’s rights, safety, or livelihoods. The law doesn’t just list a few examples and call it a day.
Instead, it lays out categories where extra scrutiny is needed, making sure that innovation does not come at the cost of trust or security. These categories ensure that AI is deployed responsibly, with safeguards that protect individuals and society as a whole.
Critical infrastructure management
Another category covers AI used to manage critical infrastructure. This includes power grids, water supplies, and transportation networks. If these high-risk AI systems malfunction, the fallout could be widespread and dangerous.
The AI Act demands rigorous testing and oversight to ensure that these systems are reliable and resilient. Operators must prove that their technology can handle unexpected situations without putting people or essential services at risk.
Employment and education decisions
AI is increasingly used to screen job applicants, grade exams, or recommend promotions. When high-risk AI systems make these decisions, there’s a real chance for bias or unfair outcomes.
The AI Act requires organizations to audit their algorithms, explain their choices, and give people ways to challenge decisions. This helps protect individuals from being unfairly treated by automated processes and keeps human judgment in the loop where it matters most.
Essential services and social support
Access to essential private or public services is another area where AI use is considered high risk. Systems that determine eligibility for benefits, loans, housing, or healthcare can deeply affect people’s ability to support themselves and their families.
The AI Act sets strict requirements for these applications, ensuring that decisions are transparent, explainable, and subject to human oversight. Providers must demonstrate that their systems are fair, accurate, and free from discriminatory bias before they are deployed.
Law enforcement and public safety
AI technologies used in law enforcement, such as tools for evidence analysis, predictive policing, or risk assessments, are also classified as high risk. Their use has profound implications for fundamental rights, including privacy, freedom, and due process.
To mitigate these risks, the AI Act enforces strong safeguards, including mandatory human supervision, rigorous testing, and clear accountability. These measures aim to prevent misuse, reduce the potential for bias, and maintain public trust in the justice system.
Migration, asylum, and border control
Automated systems that process asylum claims, assess immigration risk, or manage border security fall under the high-risk category as well. These tools directly impact people’s legal status, safety, and future, making accuracy and fairness absolutely critical.
The AI Act requires developers and deployers to conduct thorough assessments, document decision-making processes, and ensure that individuals can challenge and appeal automated outcomes.
Administration of justice and democratic processes
Finally, the use of AI in judicial decision-making or democratic governance is considered one of the highest-risk scenarios. Whether it’s a system assisting judges with rulings or tools influencing public opinion and elections, the stakes are extremely high.
How does the AI Act define high risk?
The AI Act sets out to make sure your artificial intelligence apps are safe, fair, and trustworthy. To do this, it introduces the idea of high risk AI systems. The law spells out exactly what counts as high risk, so companies and developers know when they need to meet stricter rules.
What makes an AI system high risk?
The AI Act doesn’t leave much to guesswork. It lists specific areas where AI can be considered high risk. For example, if an AI system is used in critical infrastructure like water or electricity, it’s high risk.
The same goes for AI in education, hiring, law enforcement, or healthcare. If a system can influence who gets a job, who gets into a school, or how someone is treated by police, it falls under this category.
The law also covers AI that could affect people’s fundamental rights, such as privacy or freedom from discrimination. In short, if an AI system has the power to shape important decisions about people’s lives, it’s likely to be labeled high risk.
How the AI Act checks for high risk
Not every AI tool is treated the same way. The AI Act uses a set of criteria to decide if a system is high risk. First, it looks at the purpose of the AI and the context in which it’s used. Is it making decisions that could harm someone or limit their rights?
Next, the law considers the scale and scope of the system. Does it affect many people, or just a few?
Finally, the Act checks if the AI system is autonomous or if humans are still in control. High risk AI systems are usually those that operate with little human oversight and have a wide reach.
What happens if an AI system is high risk
Once an AI system is defined as high risk, it faces strict requirements. Developers must keep detailed records, test their systems for safety, and make sure they are transparent about how the AI works.
There are also rules about human oversight, so people can step in if something goes wrong. The goal is to protect users and make sure high risk AI systems don’t cause harm. If companies fail to follow these rules, they can face heavy fines or even bans on their products.
Consequences of high risk classification
Being classified as high risk under the AI Act is a big deal for any organization. It means your AI system is seen as having the potential to impact people’s rights, safety, or well-being in a significant way.
The consequences are not just about paperwork, they touch more parts of your business, from product design to customer trust. Let’s look at what this really could mean for you.
Stricter compliance requirements
Once your AI system is labeled high risk, you’re no longer operating on trust alone. The AI Act demands that you follow strict rules before your system ever reaches the public. This starts with mandatory risk assessments and detailed documentation.
You’ll need to show exactly how your AI works, what data it uses, and how you’ve minimized risks. Every step must be recorded, from the first line of code to the final user test.
Ongoing monitoring and transparency
High-risk AI systems don’t get to fly under the radar. The AI Act requires ongoing monitoring long after deployment. You’ll need to track how your system performs in the real world and be ready to act if something goes wrong.
This means setting up processes to detect errors, bias, or unexpected outcomes. Transparency is also key. Users must be informed that they’re interacting with an AI system, and you have to provide clear information about how decisions are made.
Potential legal and financial penalties
The consequences of non-compliance are serious. If you fail to meet the requirements for high-risk AI, you could face hefty fines. The AI Act sets out penalties that can reach millions of euros, depending on the severity of the breach.
But the risks go beyond money. Legal action can follow if your AI causes harm or violates someone’s rights. This could mean lawsuits, compensation claims, or even charges in extreme cases.
Impact on innovation and market access
Being classified as high risk doesn’t just add red tape, it can change your entire approach to innovation. The extra steps required by the AI Act might slow down development or increase costs.
Some companies may decide it’s not worth the effort and abandon certain projects altogether. On the other hand, meeting these standards can become a competitive advantage. Customers and partners may prefer to work with organizations that follow the rules and prioritize safety.
In some markets, compliance will be the only way to gain access at all. So while the consequences are challenging, they also offer a chance to lead the way in responsible AI.
