The AI Act, adopted on June 13, 2024, imposes a range of obligations on actors involved in the supply chain of high-risk AI systems (for example, and under certain conditions, AI systems used as medical devices or AI systems performing profiling in the field of education or employment). For more details on the classification of AI systems, please refer to our news on the topic.
The actors concerned include providers and distributors of high-risk AI systems.
What is the role of providers and distributors?
Providers develop AI systems or have them developed and place them on the market or puts them into service under their own name or trademark. The role of distributors is to supply these systems on the EU market.
How to contractually regulate the relationship between providers and distributors?
Beyond compliance, which each operator concerned by the AI Act is responsible for, contracts between the parties are essential for clearly defining responsibilities and guaranteeing effective and secure collaboration. The aim is both (i) to pass on the relevant obligations to upstream actors in the supply chain, and (ii) to define the procedures for implementing the obligations imposed on one actor vis-à-vis another.
Thus, the contract between the provider and the distributor of a high-risk AI system should include different clauses. These clauses should in particular cover:
- demonstration by the provider of compliance with the applicable obligations;
- cooperation between the parties where necessary, for example when a request for information is made by an authority;
- the procedure to be followed if the provider identifies non-compliance in the system;
- the procedure to be followed if the distributor identifies non-compliance in the system;
- the conditions for storing and transporting the system.
Our advice:
As part of your compliance with the AI Act, it is crucial not to underestimate the importance of contracts. They will help secure your position and ensure effective collaboration with the parties involved. Our team of specialists is available to answer your questions and support you in drawing up your contracts.
Sign up for our earlegal training course on 13 December 2024 “Framing your AI projects: contractual issues”! We will address the following questions:
- What are the main contractual aspects to consider at the AI development stage?
- What are the contractual aspects to be taken into account at the AI marketing stage?
- How to ensure proper management of AI-related incidents in the contractual chain
- How to contractually manage your compliance with the AI regulation?
