Article 2(1) applies the Regulation to providers placing AI systems or general purpose models on the Union market or putting systems into service in the Union irrespective of establishment, to deployers located in the Union, to providers and deployers in third countries where output is used in the Union, to importers and distributors, to product manufacturers placing an AI system with their product under their own name, to authorised representatives, and to affected persons in the Union. Article 2 also contains exclusions and limits, including for research, military, national security and personal non professional use, and for Section B products in Article 2(2), which must be checked in the consolidated text. Territorial reach is a scope question to be worked through provision by provision, not a single test.
What does Article 2(1) cover, provision by provision?
Article 2(1)(a) covers providers placing on the market or putting into service AI systems, or placing on the market general purpose AI models, in the Union, irrespective of whether those providers are established or located within the Union or in a third country. The test is market access, not establishment. Article 2(1)(b) covers deployers of AI systems that have their place of establishment or are located within the Union. The test is the deployer location. Article 2(1)(c) covers providers and deployers that have their place of establishment or are located in a third country, where the output produced by the AI system is used in the Union. That provision is examined in a separate guide in this cluster, because the output test raises distinct evidence questions. Article 2(1)(d) covers importers and distributors of AI systems. Article 2(1)(e) covers product manufacturers placing on the market or putting into service an AI system together with their product and under their own name or trademark. Article 2(1)(f) covers authorised representatives of providers not established in the Union. Article 2(1)(g) covers affected persons located in the Union, for the rights and protections that the Act gives them. Each paragraph should be checked separately for each actor and each system, because a company can be in scope under one paragraph for one system and out of scope under another paragraph for a different system.
What do placing on the market and putting into service mean?
Placing on the market and putting into service are defined terms in Article 3, and their meanings matter for territorial reach. Placing on the market means the first making available of an AI system or a general purpose AI model on the Union market. Putting into service means the supply of an AI system for first use directly to the deployer or for own use in the Union for its intended purpose. Those definitions turn on first making available and first use in the Union, not on the place where the system was developed, hosted or trained. A system developed outside the Union, hosted outside the Union and trained outside the Union can still be placed on the Union market where it is first made available in the Union, and can still be put into service where it is first supplied for use in the Union. Conversely, a system that is never made available in the Union and whose output is never used in the Union may be outside Article 2(1), subject to the other paragraphs and to the exclusions. The record should state the first making available or first use facts, with dates, customers and channels, so that the scope conclusion can be tested. A record that states only that a system is global or is available online does not show the Union market facts.
For the broader regulatory framework, see non-EU and international overview.
What exclusions and limits are in Article 2?
Article 2 contains exclusions and limits that must be checked alongside the scope paragraphs. The Regulation does not apply to AI systems or models, including their output, specifically developed and put into service for the sole purpose of scientific research and development, subject to the conditions in the Article. It does not apply to research, testing and development activity regarding AI systems or models before their placing on the market or putting into service, subject to the conditions and to the real world testing provisions. It does not apply to AI systems released under free and open source licences, except as provided in Article 2(12) and the related provisions dealt with in the open source cluster. It does not apply to AI systems developed or used exclusively for military purposes, to public authorities in a third country or international organisations in defined cooperation frameworks, or to personal non professional use in defined respects. Article 2(2) limits the provisions that apply directly to Section B products. Each exclusion has conditions, and an exclusion that is claimed without the conditions being met will fail. The record should cite the exclusion relied on, the conditions, and the evidence that each condition is met, with the consolidated text checked on the date of the decision.
How does territorial reach interact with other Union law?
Territorial reach under the AI Act interacts with other Union law that has its own territorial rules, including data protection law, product safety law, consumer law and sector law. A system can be in scope for the AI Act and for data protection law on different grounds, with different evidence and different authorities. For example, a non-EU provider whose output is used in the Union may be in scope for the AI Act under Article 2(1)(c) and may also be in scope for the General Data Protection Regulation under its own territorial provisions, with a representative, a lawful basis and data subject rights to address separately. A product placed on the Union market may be in scope for the AI Act, for the sector product legislation and for the general product safety framework, each with its own scope and conformity route. The scope record should therefore be a multi law record, with a section for each instrument, rather than a single AI Act scope statement that is assumed to cover all other law. Where the instruments point in different directions, for example where a system is in scope for one and out of scope for another, the difference should be recorded with reasons, not smoothed over.
What evidence shows Union market or output use?
Evidence of Union market or output use can include sales records, customer locations, user locations, contracts, terms of service, app store listings, website targeting, language and currency choices, marketing aimed at Union users, and the actual use of output by Union deployers or affected persons. No single piece of evidence is conclusive on its own. A website that is accessible from the Union is not necessarily targeted at the Union, and a system that is not marketed in the Union can still have its output used in the Union through a downstream deployer. The evidence should be gathered from the commercial, technical and user records together, and should be kept up to date as the customer base changes. A provider that blocks Union access, or that excludes Union use in its terms, should record the technical and contractual measures actually in place, and should check whether those measures are effective in practice, because a term that is not enforced will not be treated as effective scope control. The evidence record should be dated, because a scope conclusion based on evidence from one period may not hold for a later period when the customer base has changed.
Continue with output used in the Union test.
What does this guide not decide?
This guide does not decide whether any named company, system or output is in scope, does not reproduce Article 2 in full, and does not decide the exclusions for any specific research, military, national security or personal use case. Scope decisions need the placing, use and output facts, the consolidated Article 2 text, and the sector and data protection scope provisions that also apply. A provider or deployer with a borderline scope question should confirm the position with a competent authority or legal adviser, with the facts and the evidence in hand. Scope is a legal conclusion that must be made on the specific facts, not a general statement from a guide.
Frequently asked questions
Is a system hosted outside the EU outside the AI Act?
Not necessarily. The tests in Article 2(1) turn on placing on the Union market, putting into service in the Union, and output use in the Union, not on hosting location. A system developed and hosted outside the Union can be in scope where it is made available in the Union or its output is used there. Hosting facts should be recorded, but they do not decide scope alone.
Does a terms clause excluding EU use remove scope?
Not by itself. A contractual exclusion must be effective in practice, with technical and commercial measures that support it, and the actual use of output must be examined. A term that is not enforced, or that is contradicted by marketing, sales or user records, will not be treated as effective scope control. The evidence should be checked with a legal adviser.
Are research systems excluded?
Article 2 contains defined exclusions for systems specifically developed and put into service for the sole purpose of scientific research and development, and for research, testing and development before placing on the market, subject to conditions. Each exclusion has conditions that must be met and evidenced. Research that moves towards placing on the market, or that is used for other purposes, can fall outside the exclusion.
What is the difference between placing on the market and putting into service?
Placing on the market is the first making available of a system or model on the Union market. Putting into service is the supply of a system for first use directly to the deployer or for own use in the Union for its intended purpose. Both are defined in Article 3 and both can trigger scope, and the first making available or first use facts should be recorded with dates and channels.
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This article is an informational overview, not a legal determination. Check the current legal text and official implementation guidance for your system and role.
Consolidated Regulation (EU) 2024/1689 ↗AI Act Service Desk timeline ↗