provider
regulatoryWhat It Means
A provider is the organization that develops an AI system and puts it on the market under their own brand, whether they sell it or give it away for free. This includes companies that build AI systems in-house or hire others to build them, as long as they're the ones bringing it to market. The key is being the entity that takes responsibility for placing the AI system into commercial use.
Why Chief AI Officers Care
As a provider, your organization becomes legally responsible for ensuring AI systems comply with all EU AI Act requirements, including risk assessments, documentation, and ongoing monitoring. This means significant compliance costs, potential liability for system failures, and the need to establish robust AI governance processes. Being classified as a provider also determines which specific obligations your company must meet under the regulation.
Real-World Example
Microsoft is the provider for GitHub Copilot because they developed the AI coding assistant and offer it to customers under the GitHub brand, even though the underlying AI models may use third-party components. They're responsible for ensuring Copilot meets all regulatory requirements, not the individual developers who use it or the companies whose code it was trained on.
Common Confusion
Companies often think they're not providers if they use third-party AI components or outsource development, but if you're the one bringing the final AI system to market under your name, you're still the provider. Simply using someone else's AI system as a customer doesn't make you a provider.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, a provider under AI regulations is the organization that develops and commercially deploys AI systems for...
Finance: In finance, AI system providers include banks deploying algorithmic trading platforms, fintech companies offering AI-pow...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
EU AI ActEuropean Union Artificial Intelligence Act
"A natural or legal person, public authority, agency or other body that develops an AI system or a general-purpose AI model or that has an AI system or a general-purpose AI model developed and places it on the market or puts the AI system into service under its own name or trademark, whether for payment or free of charge."Article 3(3) • Effective: August 2, 2026
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