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AI Act and SMEs: What exemptions for small businesses?

The regulation provides accommodations for SMEs and startups. Discover the support measures and exemptions you can benefit from.

Author Marie Dupont
January 3, 2025 9 min read
AI Act and SMEs: What exemptions for small businesses?
The AI Act provides specific measures to support SMEs

Aware that SMEs and startups are the engine of European AI innovation, the legislator has included support measures and accommodations in the AI Act. However, these exemptions have their limits. Let's take stock.

The AI Act recognizes SME challenges

The regulation explicitly mentions the need to support small and medium enterprises, startups and researchers in their compliance efforts. The goal is to foster innovation while ensuring citizen protection.

Several mechanisms are planned to facilitate adoption of the regulation by smaller structures.

Important information

SMEs are not exempt from the AI Act. They benefit from accommodations but remain subject to fundamental obligations, especially for high-risk systems.

SME definition in the AI Act

The AI Act uses the standard European SME definition:

Category Headcount Turnover or balance sheet
Micro-enterprise < 10 persons ≤ EUR 2M
Small enterprise < 50 persons ≤ EUR 10M
Medium enterprise < 250 persons ≤ EUR 50M

Planned support measures

Here are the main accommodations SMEs benefit from:

Simplified documentation

SMEs can use simplified forms for technical documentation, reducing administrative burden.

Regulatory sandboxes

Priority access to supervised test environments by authorities to experiment in real conditions.

Extended deadlines

Possibility of benefiting from additional deadlines for certain compliance requirements.

Reduced fees

Reduction in conformity assessment fees by notified bodies.

Exemption limits

It is crucial to understand that these accommodations do not constitute a total exemption:

  • Substantive obligations (safety, fundamental rights) remain identical
  • High-risk systems are subject to the same requirements regardless of company size
  • Prohibited practices (Article 5) apply to everyone without exception
Watch out for partnerships

If you develop an AI system for a large company or public administration, the deployer's obligations may impact your own compliance requirements.

Available resources

Several resources are available to SMEs to facilitate their compliance:

AI sandboxes

Supervised test environments in each Member State.

Free training

Training programs funded by the EU and States.

Practical guides

Official simplified documentation for SMEs.

Our recommendations

To make the most of the planned accommodations, we recommend:

  1. Verify your SME status eligibility according to European criteria
  2. Identify available regulatory sandboxes in your country
  3. Anticipate your compliance needs even with extended deadlines
  4. Document your AI systems now using simplified forms

Assess your situation

Our tool identifies SME accommodations applicable to your case.

Start free audit

The AI Act offers a more flexible framework for SMEs, but this does not exempt you from seriously preparing for compliance. By anticipating now, you can fully benefit from support measures and avoid unpleasant surprises as deadlines approach.

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