AI product regulatory research

AI Product Regulation Research

Examine the product's specific AI features and model integrations to determine regulatory obligations under the EU AI Act, GDPR, intellectual property rules, and commercial AI terms.

AI System & Data Flow Mapping

1. Trace the Complete AI Pipeline in Code:
   • Identify every AI feature (chat assistant, content generation, classification, summarization, code/document analysis, autonomous agent actions).
   • Map:
     • Inputs: User prompts, uploaded files, RAG context, system prompts, and conversation history.
     • Model architecture & vendors: Which foundation model providers, API endpoints, or self-hosted models process the data, and in which geographic region.
     • Retention & logging: Whether prompts/outputs are stored in application databases, cached, or retained by the model provider for abuse monitoring (e.g., 30-day safety logs vs. Zero Data Retention endpoints).
     • Model training: Whether customer inputs or outputs are ever used to train, fine-tune, or improve foundation models, or whether API/enterprise terms contractually prohibit training.

Regulatory & Contractual Requirements

1. EU AI Act Role & Risk Assessment (Regulation (EU) 2024/1689):
   • Determine whether the organization acts as an AI deployer, AI provider, or product manufacturer for each AI feature.
   • Check for prohibited practices (Art. 5), high-risk classification triggers (Art. 6 & Annex III), and Article 50 transparency obligations:
     • Clear disclosure to natural persons that they are interacting with an AI system (unless obvious from context).
     • Machine-readable marking/watermarking of synthetic audio, image, video, or text content generated by the system where applicable.
     • Clear labeling of deepfakes or AI-generated public-interest text.
2. GDPR & Privacy Alignment for AI:
   • Establish the legal basis for processing personal data in prompts/context and outputs.
   • Disclose LLM providers accurately in the Privacy Notice and Art. 28 Subprocessor List.
   • Assess whether any feature performs solely automated decision-making producing legal or similarly significant effects under GDPR Article 22, requiring explicit legal basis, human intervention safeguards, and explanation rights.
3. AI-Specific Terms of Service Clauses:
   • Address input/output ownership and licensing, acceptable use restrictions, probabilistic nature and accuracy disclaimers (no professional legal/medical/financial advice), human-in-the-loop responsibility, and truthful commitments on data confidentiality and training opt-outs.