A startup has two AI products: Product A is a general-purpose coding assistant (suggesting code snippets). Product B automatically screens CVs and ranks candidates for a financial services firm's job applications. Under the EU AI Act, which product requires higher compliance effort and why?
- A.Product B is exempt from high-risk requirements since it ranks candidates rather than making final decisions
- B.Product A requires higher compliance since it processes more data and has more users
- C.Both products require identical compliance since they are both AI systems
- D.Product B requires significantly higher compliance effort: it falls under Annex III (AI for employment decisions) as a high-risk AI system requiring conformity assessment, technical documentation, bias testing, human oversight mechanisms, and EU database registration - Product A as a general-purpose coding tool is likely classified as minimal or limited risk with primarily transparency obligations