What counts as an "AI system" for a small business?
The Act's definition is a machine-based system that infers how to generate outputs — predictions, content, recommendations or decisions.
Drafted with AI help and checked against the official EU text before publishing.
The Act's definition is a machine-based system that infers how to generate outputs — predictions, content, recommendations or decisions. A chatbot or writing assistant usually counts. A simple calculator usually does not.
You do not need a second definition for a shop. Use the Article 3(1) wording and list the tools you actually run. High-risk is a narrower list (Annex I and Annex III). Most small-business chat tools are not on that list.
This is general information, not legal advice.
What the law actually says
"‘AI system’ means a machine-based system that is designed to operate with varying levels of autonomy and that may exhibit adaptiveness after deployment, and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments;"— EU AI Act, Article 3(1) (Regulation (EU) 2024/1689) · eur-lex.europa.eu
In plain words
- ChatGPT, Copilot and similar assistants infer what to say from a prompt. They sit inside this definition.
- The definition needs inference — not every spreadsheet formula or spell-check is an AI system. If you are unsure about a specific tool, mark it in your inventory and get advice.
- You do not need to invent a second definition for a shop. Use the Article 3(1) wording and list the tools you actually run.
- High-risk is a narrower list (Annex I and Annex III). Most small-business chat tools are not on that list.

- Will look for signs of AI use in the folders you choose, and write them down for you.
- Will write a plain-language readiness report. No evidence reads "Not assessed", never a green tick.
- Will run as a free Windows program on your own computer and send nothing from it.
- Coming with Guard: a check every month, kept so you can see your history and what changed since the last one.
- Coming with Guard: a printable readiness pack built from your check results — AI use found, training notes, disclosure checklist.

Did this answer your question?
Readiness guidance, not legal advice. The Free Toolkit sends nothing from your computer.
