What does the EU AI Act regulate?

• A. It regulates providers and users of AI in the EU
• B. It regulates only data privacy
• C. It regulates hardware vendors
• D. It regulates AI research funding

Answer: (A)

The EU AI Act sets rules for AI systems used or sold in the European Union, applying to the parties who provide AI products and those who deploy them within the EU. It uses a risk-based approach, with stricter requirements for high‑risk AI and obligations that cover how these systems are designed, documented, tested, and monitored. While data privacy is governed primarily by GDPR, the AI Act focuses on the governance, safety, and fundamental rights implications of AI itself and how providers and users must operate. It does not regulate hardware vendors or AI research funding—the regulation targets the actors who bring AI into the EU market and those who use it.