As the EU Artificial Intelligence Act (AI Act) prepares to reshape how artificial intelligence is regulated in Europe, non-EU providers of high-risk AI systems and general-purpose AI models (GPAI) must act swiftly to remain compliant and competitive. Central to compliance under this new legislative framework is the obligation to appoint an EU AI Authorized Representative (AR). Here’s why immediate preparation is essential.
Understanding the Authorized Representative (AR)
An Authorized Representative is a natural or legal person established within the EU, acting as the point of contact between AI providers outside the EU and European regulatory authorities. As the EU AI Act mandates, this role ensures that AI systems adhere to transparency, accountability, and safety standards required for market entry.
When is an EU AI Authorized Representative Required?
The obligation to appoint an Authorized Representative applies specifically to non-EU providers of:
- High-risk AI systems, such as those used in healthcare, recruitment, education, employment management, or products regulated by existing EU directives like the Machinery Directive or Medical Device Regulation.
- General-purpose AI models (GPAI), which are large-scale AI models capable of performing diverse tasks, including popular Large Language Models (LLMs).
Providers releasing GPAI models under free and open-source licenses are exempt from this obligation.
Immediate reasons to appoint an EU AR now
- Avoid costly non-compliance penalties:
- Failure to appoint an AR constitutes formal non-compliance, leading to substantial administrative fines of up to EUR 15 million or 3% of your total global annual turnover.
- Authorities may restrict or prohibit the operation of non-compliant AI systems or GPAI models within the EU market, causing severe operational disruptions.
- Comprehensive verification and documentation requirements:
- ARs verify and maintain critical compliance documents, including the EU Declaration of Conformity, technical documentation, conformity assessment outcomes, and official certificates from notified bodies, retaining records for at least ten years.
- ARs serve as a direct liaison, providing documentation promptly to EU authorities, facilitating access to system-generated logs, and assisting authorities during compliance audits or investigations.
- Market readiness and competitive advantage:
- Early appointment of an AR ensures smooth market entry, preventing regulatory delays. Companies prepared in advance can build trust with EU stakeholders, gain market share, and demonstrate robust governance practices aligned with evolving AI standards.
- Complexity of the role requires early preparation:
- Selecting an effective AR is critical. Providers need partners experienced in EU regulatory frameworks, capable of managing sensitive data, and adept at responding swiftly to regulatory requests and market surveillance activities.
- Providers must formalize this relationship through detailed written mandates clearly outlining roles, responsibilities, and liabilities.
Critical responsibilities of an EU AI Authorized Representative
Authorized Representatives must:
- Confirm provider compliance with EU regulatory standards, including technical documentation and the EU Declaration of Conformity.
- Keep detailed records, including provider contact information and certificates of conformity.
- Provide timely responses to EU regulatory bodies and cooperate with enforcement activities.
- Terminate mandates and promptly notify authorities if a provider violates regulatory obligations.
How to get started?
Given the EU AI Act’s entry into force by August 2026, companies must begin preparations now to ensure seamless compliance. Selecting a reliable, experienced AR today will protect against market disruption and regulatory penalties tomorrow.
Next steps
Navigating the EU AI Act can seem daunting, but professional assistance simplifies the journey:
- Seek expert guidance on the EU regulatory landscape.
- Establish an AR mandate tailored specifically to your AI products and services.
- Integrate smoothly into the EU market with minimal friction.
Contact us today to understand how our expert Authorized Representative services can support your compliance and secure your position in the evolving EU AI ecosystem.