learn-ai-governance-with-phoebe / Practitioner session 1 of 8
Learn AI Governance with Phoebe · Practitioner track · Session 1 of 8

Classify a system before anything else

Everything you owe under the EU AI Act flows from one decision: which risk tier your system is in. Get the tier right and the obligations follow; get it wrong and you either over-build or ship something banned. This session turns the classification into a tool - a live checker that takes what a system does and returns its tier, its obligations, and the article behind it. Vantage classifies its hiring tool here.

🟢 Practitioner track AI/ML · risk · compliance Live classifier included Start here
0-3 · Welcome 3-18 · Concepts 18-40 · Build-along 40-45 · Q&A
Part 0

The decision that gates everything

The EU AI Act is risk-tiered: what you must do depends entirely on which tier your system falls in. A prohibited system cannot ship at all. A high-risk one carries a heavy compliance programme. A limited-risk one needs only disclosure. A minimal-risk one needs nothing. So the first, gating task for any AI system is classification - and it is a decision you can learn to make quickly and defend. This session builds that reflex with a checker you drive.

Read this first Educational, not legal advice. The checker is a teaching model of the risk-tier logic - real classification depends on specific facts. Read Regulation (EU) 2024/1689 and get advice.
Live - presented in session Self-study - full depth after class ★ Try it now Sources covered at the end
★ What you build today The risk-tier decision logic in order, hands-on time with a live classifier, and the two nuances that trip people up - the Article 6(3) downgrade and the "profiling is always high-risk" rule.
Part 1 · covers the decision logic

First match wins 7 min live

Classification runs in order: check prohibited first, then high-risk, then limited, else minimal - and assess GPAI as a parallel layer. The first tier that matches is the answer.

In scope?(Art 2) Prohibited?Art 5 - stop High-risk?Art 6 + Annex III Limited?Art 50 disclose Minimalno obligations Parallel: is it a GPAI model? (Art 51/53/55)baseline docs; + systemic risk above 10^25 FLOP First match wins. A GPAI model can be its own tier while systems built on it classify separately.
🔍 Click to zoom - the risk-tier decision order
LiveThe order, and why order matters3 min▶
  • In scope? (Art 2) - if not (no EU market, no EU output), the Act does not apply. Everything below assumes you are in.
  • Prohibited? (Art 5) - the eight banned practices. If it matches, stop: it cannot ship, and the fine tier is the highest (7% / EUR 35M).
  • High-risk? (Art 6 + Annex III) - the eight use-case areas (employment, credit, education, biometrics, law enforcement...). This is where most consequential business AI lands.
  • Limited-risk? (Art 50) - chatbots, deepfakes, synthetic content. Disclosure and labelling only.
  • Minimal - everything else. No mandatory obligations.
  • GPAI (parallel): if the artefact is a general-purpose model, it carries its own obligations regardless of the tier of systems built on it.
★ Try it now (any chat AI)Walk me through classifying an AI system under the EU AI Act in order: is it in scope (Art 2), prohibited (Art 5), high-risk (Art 6 + Annex III), limited-risk (Art 50), or minimal - and separately, is it a GPAI model? Then classify an AI CV-screening tool used on EU candidates and name the article.
Live★ Build-along: classify systems4 min▶

Pick systems in the checker and read the tier, the obligations, and the basis. Start with "screen job applicants" (Vantage's tool -> high-risk, Annex III(4)), then a prohibited one (social scoring), a limited one (chatbot), and a GPAI model.

Honesty note - what the classifier is A teaching model of Articles 5, 6, 50, and Chapter V. It gives you the structure and the usual answer for a scenario; a real classification turns on your specific facts (especially the Article 6(3) downgrade). Use it to build the reflex; confirm real calls with the Regulation and advice.
Part 2 · the two nuances

Downgrade, and the profiling trap 8 min live

Two rules decide the close calls in the high-risk tier. One can pull a system down out of high-risk; the other slams it back in. Miss them and you will misclassify.

Annex III use caselooks high-risk Art 6(3) downgradenarrow / preparatory only Profiles people?ALWAYS high-risk The downgrade onlyholds if there is NO profiling If the system profiles natural persons, no Art 6(3) downgrade applies - it is high-risk, full stop.
🔍 Click to zoom - the Article 6(3) downgrade and the profiling trap
LiveThe Article 6(3) downgrade3 min▶

Not every system in an Annex III area is automatically high-risk. Article 6(3) lets a system escape the high-risk tier if it does not pose a significant risk because it only:

  • performs a narrow procedural task; or
  • improves the result of a completed human activity; or
  • detects decision patterns/deviations without replacing human review; or
  • performs a preparatory task.

Example: a tool that only formats and forwards applications to a recruiter, without scoring or ranking, may qualify for the downgrade. But the moment it ranks, scores, or filters candidates, it is doing the consequential work - and it is high-risk.

LiveThe profiling trap3 min▶
  • The override: if the system performs profiling of natural persons, the Article 6(3) downgrade does not apply - it is high-risk, full stop.
  • Why it matters: teams reach for the downgrade to avoid the compliance burden, then forget that any real evaluation of a person (scoring, ranking, predicting behaviour) is profiling. The escape hatch closes.
  • The honest test: "does this system make or shape a judgement about a specific person?" If yes, assume high-risk and prove otherwise, not the reverse.
Real world

Vantage classifies its hiring tool. Vantage hoped its CV screener might qualify for the Article 6(3) downgrade as a "preparatory" tool. But it ranks candidates - that is profiling. No downgrade: it is high-risk under Annex III(4). The classification decided Vantage's entire compliance roadmap for the rest of the track.

Build-along · take it further

Classify your real systems ★ 10 min · the checker above

Run your own AI on the classifier.

Your systems. For each in-scope AI system, pick the closest scenario in the checker and record the tier + basis.

Test a downgrade. Take a borderline Annex III system and ask honestly: is it narrow/preparatory, or does it profile a person? Decide whether the downgrade genuinely applies.

Find a prohibited one. Check whether anything you do touches an Article 5 ban (emotion recognition at work, social scoring). If so, that is a stop-now item.

Reflect. In one line: which of your systems is high-risk and least prepared? That is where sessions b2-b7 pay off first.

★ Vantage after b1 Vantage knows its hiring tool is high-risk (Annex III(4)) and cannot dodge it via the downgrade - it profiles candidates. That single classification writes its roadmap: the full high-risk obligations, which b2 tackles next.
Homework

Before session b2 ◐ 40 min total

Source material

Official sources covered

Taught from the EU AI Act text. This page covers ~80% of the working content on classification.

✓EU AI Act Articles 5, 6, 50 + Annex IIIPart 1 · the tiers and the decision order (the checker)
✓Article 6(3) (the downgrade + profiling override)Part 2 · the two nuances that decide close calls
◐Chapter V (GPAI classification)Part 1 · the parallel layer; full depth in b4
Check yourself

Three questions before you go 🎯 ◐ 90 seconds

1 · You classify a system in order. What do you check FIRST (after confirming it is in scope)?

First match wins, and prohibited is checked first: if it matches Article 5 it cannot ship, and no lower tier is relevant. Then high-risk, then limited, else minimal.

2 · An Annex III system might avoid the high-risk tier via the Article 6(3) downgrade - UNLESS it...

The downgrade covers narrow/preparatory systems, but profiling of people overrides it: any system that scores, ranks, or predicts about a person is high-risk, no downgrade.

3 · An AI CV-screening tool that ranks candidates, used on EU applicants, is...

Employment/recruitment is Annex III(4). Ranking candidates is profiling, so the Article 6(3) downgrade does not apply - it is high-risk, with the full obligations.

Practitioner session 1 cheat sheet · pin this

Classify firstEverything you owe flows from the tier. It is the gating decision for any AI system.
The orderIn scope? → prohibited (Art 5)? → high-risk (Art 6 + Annex III)? → limited (Art 50)? → else minimal.
First match winsStop at the first tier that matches. GPAI is assessed as a parallel layer.
Prohibited = stopArticle 5 practices cannot ship at all; highest fine tier (7% / EUR 35M).
High-risk = the burdenAnnex III use cases: employment, credit, education, biometrics, law enforcement, etc.
Art 6(3) downgradeA narrow/preparatory Annex III system can drop out - but only if it does not profile people.
Profiling trapAny system that judges a person is high-risk. No downgrade. Assume high-risk, prove otherwise.
The checkerA teaching model of Art 5/6/50/Ch V. Confirm real close calls with the Regulation + advice.