Provider of an AI System
A person or entity developing an AI system for market placement or service application.
How the laws define this
Both instruments agree that a provider is any natural or legal person, or public entity, that develops an AI system—or has it developed by order—and offers it under their own name, brand, or trademark by placing it on the market or putting it into service. However, they diverge regarding geographic reach and monetization details. The Guidelines on Transparency of AI-Generated Content explicitly extend this definition to entities located outside the EU if the output of their AI system is used within the EU. In contrast, Projeto de Lei nº 2338, de 2023 - Dispõe sobre o uso da Inteligência Artificial does not mention extraterritorial output use, but it uniquely specifies that provider status applies when an entity uses an AI system in a service it provides, regardless of whether that service is offered for a fee or free of charge.
Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.
How jurisdictions differ
What is distinctive in each definition, binding law in force first.
| Jurisdiction | Instrument | Status | What is distinctive |
|---|---|---|---|
| European Union | Guidelines on Transparency of AI-Generated Content | In Force | Adds inclusion of public authorities and agencies as providers, covers entities outside the EU if their output is used in the EU, and specifies placing on the EU market or putting into service. |
| Brazil | Bill No. 2338, of 2023 - Provides for the Use of Artificial Intelligence | Under Review | Includes providers who develop AI systems directly or by order, explicitly covers both public and private persons, and applies regardless of whether provided for a fee or free of charge. |
What it triggers
- In Brazil, if enacted, the bill would impose governance rules and civil liability on providers of AI systems.source
Definitions (2)
A natural or legal person, public or private, who develops an AI system, directly or by order, with a view to placing it on the market or applying it in a service provided by them, under their own name or brand, whether for a fee or free of charge.
A provider of an AI system is any natural or legal person, public authority, agency, or other body that develops an AI system or has it developed, and then places it on the EU market or puts it into service under their own name or trademark. This includes entities outside the EU if their AI system's output is used within the EU.
Questions and answers
Does the EU definition cover non-EU providers?
Yes, it includes entities outside the EU if their AI system's output is used within the EU.
What obligations apply to providers under the EU Guidelines?
The Guidelines on Transparency of AI-Generated Content guide providers on content marking, deepfake labeling, and user notifications under Article 50 of the EU AI Act.
Does the Brazilian bill cover free AI services?
Yes, it includes providers who place AI systems on the market or apply them in services whether for a fee or free of charge.