<?xml version="1.0" encoding="utf-8" standalone="yes"?><rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:content="http://purl.org/rss/1.0/modules/content/"><channel><title>Compliance on {IT}</title><link>https://igortkanov.com/people/compliance/</link><description>Recent content in Compliance on {IT}</description><generator>Hugo</generator><language>en-us</language><copyright>Copyright © 2026 {IT}. All rights reserved. Unless otherwise stated, all text, images, diagrams, and other original content on this blog may not be reproduced, distributed, or used without prior written permission.</copyright><lastBuildDate>Wed, 24 Jun 2026 18:04:38 +0000</lastBuildDate><atom:link href="https://igortkanov.com/people/compliance/index.xml" rel="self" type="application/rss+xml"/><item><title>The EU AI Act for small companies</title><link>https://igortkanov.com/eu-ai-act-disclosure-deadline/</link><pubDate>Wed, 24 Jun 2026 09:32:00 +0000</pubDate><guid>https://igortkanov.com/eu-ai-act-disclosure-deadline/</guid><description>A working read of the EU AI Act for a small B2B startup building on a foundation model: provider versus deployer, the four risk tiers, and why the Aug 2, 2026 transparency deadline (Article 50) is a disclosure task, not a rebuild. Plus the Digital Omnibus delaying high-risk obligations to Dec 2027, the AI-literacy duty, and the open question of who owes end-user disclosure down a B2B chain.</description><content:encoded><![CDATA[<p>I spent an afternoon last week running the <a href="https://artificialintelligenceact.eu/" target="_blank" rel="noopener noreferrer">EU AI Act</a> against a real product. A small B2B startup here in the EU, the kind with a genuinely cool product – AI that picks up customer-support conversations and answers them on top of somebody else&rsquo;s foundation model. August was on the calendar (Aug 2, 2026, the big transparency date). The penalties on screen read <a href="https://artificialintelligenceact.eu/article/99/" target="_blank" rel="noopener noreferrer">€35M, or 7% of global turnover</a> (the Act&rsquo;s top band). The question was operational: does this date mean hiring a lawyer and a compliance person, or more like changing a line of UI copy?</p>
<p>So I made coffee and went through it, with the product open in another tab. Around hour two I felt a small wave of relief on their behalf – because for a company like this, the answer is mostly the UI copy.</p>
<h2 id="the-two-questions-that-decide-everything">The two questions that decide everything</h2>
<p>Before any date or penalty means anything, two classifications decide the entire burden.</p>
<ul>
<li><strong>Are you a provider or a deployer?</strong> A <strong>provider</strong> builds an AI system and puts it on the market under its own name. A <strong>deployer</strong> just uses one. Integrate a foundation model into a product you ship, and you&rsquo;re usually both: the provider of your own system (the support agent) and a downstream deployer of the model underneath. What you are <strong>not</strong> is a model maker.</li>
<li><strong>The model-maker deadline already passed.</strong> Aug 2, 2025 was when obligations landed on general-purpose model providers – the OpenAI / Anthropic / Google / Mistral tier. If you train foundation models, that was your day. If you call one through an API and build on top, it wasn&rsquo;t. Some founders read that headline last summer and panicked about the wrong calendar.</li>
<li><strong>Which risk tier is your system in?</strong> This is the number that sets the size of everything – the obligations, the paperwork, the penalty band.</li>
</ul>
<h2 id="find-your-weight-class-before-investing">Find your weight class before investing</h2>
<p>The Act sorts AI into four buckets, and I keep picturing them as weight classes. Find yours before you spend a single euro on compliance, because the bracket sets the bill.</p>
<ul>
<li><strong>Prohibited.</strong> Social scoring, manipulative dark-pattern stuff, certain biometric surveillance. Banned since Feb 2, 2025. A support bot isn&rsquo;t in this room.</li>
<li><strong>High-risk (<a href="https://artificialintelligenceact.eu/annex/3/" target="_blank" rel="noopener noreferrer">Annex III</a>).</strong> The heavyweight bracket – AI that gates hiring, credit, education, essential services. Real audits, real documentation, real human-oversight machinery. This is the bracket that costs you a compliance hire.</li>
<li><strong>Limited / transparency.</strong> Systems that talk to people or generate content. The duty here is mostly to say so. This is where a chatbot lives.</li>
<li><strong>Minimal.</strong> Spam filters, the recommendation widget. Basically nothing.</li>
</ul>
<p>Here&rsquo;s the part that changed the founder&rsquo;s week. The heavyweight bracket just got delayed. Under the <a href="https://www.consilium.europa.eu/en/press/press-releases/2026/05/07/artificial-intelligence-council-and-parliament-agree-to-simplify-and-streamline-rules/" target="_blank" rel="noopener noreferrer">Digital Omnibus</a> (a provisional political deal from May 2026), the stand-alone high-risk obligations slid from August 2026 all the way to Dec 2, 2027. So even if you were high-risk, the expensive fight isn&rsquo;t this summer.</p>
<p>And a customer-support AI usually isn&rsquo;t high-risk in the first place. It only gets pulled up into the heavyweight class if it stands between a person and an essential service – their electricity, their insurance, their credit. Answering &ldquo;where&rsquo;s my order&rdquo; usually gates nothing.</p>
<p>So the product I was looking at lands squarely in the transparency class, and the whole August milestone collapses into one idea: tell people they&rsquo;re talking to AI.</p>
<h2 id="what-august-2nd-actually-asks-of-you">What August 2nd actually asks of you</h2>
<p>This is <em>the date</em> the post is about, and once you know your weight class it gets almost boring – in the good way. Aug 2, 2026 is when the transparency rules (<a href="https://artificialintelligenceact.eu/article/50/" target="_blank" rel="noopener noreferrer">Article 50</a>) switch on and broad enforcement matures behind them. For a transparency-class product, that&rsquo;s three things:</p>
<ul>
<li><strong>Tell users they&rsquo;re talking to AI.</strong> A system that interacts with people has to make that obvious. In practice: a first-message line, a label in the chat header, a sentence on the page.</li>
<li><strong>Mark synthetic content as synthetic.</strong> Generate images, audio, or video, and it has to be flagged, including machine-readable watermarking. That provider watermarking piece (Article 50(2)) got nudged to Dec 2, 2026, so there&rsquo;s a little more runway on the technical bit.</li>
<li><strong>AI literacy.</strong> A duty (<a href="https://artificialintelligenceact.eu/article/4/" target="_blank" rel="noopener noreferrer">Article 4</a>) that&rsquo;s actually been live since Feb 2, 2025 – make sure the people operating your AI have a basic clue what it does. For a small team that&rsquo;s a doc and a lunch, not a program.</li>
</ul>
<h2 id="when-it-stops-being-simple">When it stops being simple</h2>
<p>I&rsquo;d be lying by omission if I stopped there, because around hour three I hit the thing I still haven&rsquo;t resolved.</p>
<p>The startup is B2B. They offer their support AI to other companies who point it at their own customers. So the people actually typing &ldquo;Can I have a refund?&rdquo; and reading the reply are shoppers the startup never meets and never sells to. Those shoppers may not always realize there&rsquo;s an AI on the other end.</p>
<p>My first instinct was clean and comforting: not the startup&rsquo;s problem. They&rsquo;re B2B. The shop is the one facing the consumer – letting the shop disclose would be logical.</p>
<p>Then I read Article 50(1) again. The duty to design the system so a person knows they&rsquo;re talking to AI sits with the provider of that system. Not the buyer – the builder. So &ldquo;we&rsquo;re just B2B, disclosure is our customer&rsquo;s job&rdquo; stops being a clean exemption. The disclosure follows the conversation, not the contract. Wherever the AI actually talks to a human, the design-time duty seems to reach back up the chain to whoever built it.</p>
<p>I genuinely don&rsquo;t know where that line sits. The <em>provider-versus-deployer</em> split gets blurry right here – the moment your product talks to someone else&rsquo;s end users – and it blurs further if you fine-tune the model or wire several together (are you still &ldquo;just&rdquo; a deployer then?). This is the spot where I&rsquo;d stop reading regulations and pay a lawyer for one specific question: as a B2B provider, how much of the end-user disclosure is designed-in on us, versus operationally on our customer? My hunch is &ldquo;more on us than we&rsquo;d like&rdquo;.</p>
<p>The one question left: who owes the truth when it talks to a stranger.</p>
<p>Thanks for reading!</p>
<p><em>A working analysis, not legal advice – dates and tiers as I read them in June 2026, with the Omnibus delay still provisional. If your AI gates an essential service, or you fine-tune heavily, the easy answers stop applying.</em></p>
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