Explanation
The EU AI Act classifies AI systems by risk: unacceptable risk (banned), high risk (strict requirements - hiring, credit, healthcare, critical infrastructure), limited risk (transparency obligations), and minimal risk (voluntary guidelines). High-risk AI requires conformity assessments, technical documentation, human oversight, and logging.
Why it matters
August 2026 is the enforcement deadline for high-risk AI provisions. Fines reach up to 30M EUR or 6% of global annual revenue. The Act applies to any organization offering AI in the EU market, regardless of headquarters.
How Borealis uses it
BorealisMark certification provides documentation, audit trails, and Hedera-anchored records that directly satisfy EU AI Act conformity assessment requirements. The five BTS dimensions map to the Act's requirements for robustness, accuracy, transparency, and human oversight.