Every AI use case an SME runs falls into one of four EU AI Act risk categories — unacceptable, high, limited (transparency), or minimal. Most SME tools land in the bottom two, but "minimal" still isn't "no obligations", and getting the classification wrong is the single most common AI Act mistake among smaller companies.
The four risk categories
The AI Act classifies every AI system by the risk it poses to people's rights and safety:
- Unacceptable: systems that enable manipulation or unethical practices, such as behavioural manipulation without consent. Rarely relevant for SMEs, but worth ruling out explicitly.
- High risk: systems tied to people's wellbeing or rights, such as credit scoring or candidate selection in hiring. Strict safety and documentation obligations apply.
- Limited risk (transparency): AI that could mislead people, such as chatbots and deepfakes. Users must be told they're dealing with AI.
- Minimal risk: AI with no significant impact on rights or safety — the category most SME tooling falls into, from writing assistants to internal automation.
What the Digital Omnibus changed
Under the Digital Omnibus, obligations for high-risk AI systems were pushed back to 2 December 2027, giving SMEs more runway to prepare. That delay does not touch Article 4 (AI literacy) or Article 50 (transparency for chatbots and generated content) — both have been in force since 2 August 2026, regardless of company size.
What this means in practice
A few concrete steps cover most of the obligations that actually apply to SMEs:
- Run an internal audit to determine which risk category your AI use falls into.
- Prepare documentation for transparency requirements if you use chatbots or publish AI-generated content.
- Track new guidance and funding schemes that can help you reach compliance.
For the full timeline of what's active and what's coming, see our AI Act delay explainer.
Key takeaway
Classifying your AI use case correctly is the first real step toward AI Act compliance — and for most SMEs it takes an afternoon, not a project. Want to know exactly where your applications stand? Sign up for our free compliance scan and get a clear picture of your current status.