Article

The company using an AI system may carry the duty

The EU AI Act assigns duties by legal role. A company that deploys or modifies a system may carry an obligation even when it did not build the model.

Legal roles under Article 3

Article 3 of the EU AI Act assigns roles by the act performed. A provider places an AI system or general-purpose model on the market under its name, while a deployer uses an AI system under its own authority.1

A company using the system may therefore carry a duty even if another company made the model. I would start by identifying the company that performs the act regulated by the provision.

“Foundation model” is a market term. The Act instead defines a “general-purpose AI model” by its ability to perform a wide range of tasks and be integrated into downstream systems.

General-purpose model providers

The Act directly regulates providers of general-purpose AI models, requiring them to give downstream system providers information needed to understand the model and comply with the Act. Additional obligations apply when a model presents systemic risk, the Act's category for risks that can cause significant harm across the Union because of the model's capabilities or reach.2

Those obligations applied to models placed on the market after 2 August 2025. Since 2 August 2026, the Commission can enforce the provider's documentation and systemic-risk duties.

Another company may adapt the model inside a product that the original developer neither operates nor sells to the final user. Duties tied to that use may apply to the company operating the product.

Role changes under Article 25

Article 25 can make a deployer the provider of a high-risk system after a substantial modification. The same can happen when another party changes the system's intended purpose so that it becomes high-risk.3

The company taking on the provider role may need technical information from its upstream supplier. The contract should secure that access before the system is changed.

A July 2026 amending measure extended the application dates for the AI Act's high-risk provisions. It changed the timetable but left Article 25's role allocation in place.4

Marking and disclosure under Article 50

Article 50 assigns machine-readable marking to the provider of a covered generative system. A deployer publishing specified deepfakes or public-interest text may have to disclose the use.5

Machine-readable marking does not satisfy a deployer's separate disclosure duty for covered publication.

The deployer knows where the content appears and whether people will encounter it as part of a professional service. The model provider may be unable to determine that context from an API call alone.

The CMA investigation

On 14 May 2026, the UK Competition and Markets Authority opened an investigation into whether Microsoft has strategic market status in its business-software ecosystem. The investigation concerns Microsoft's position across business software and cloud services.6

The CMA is examining Microsoft's licensing and access terms under competition law, including whether customers can switch software or cloud provider.

Sources

Reviewed

  1. 01
    Regulation (EU) 2024/1689 laying down harmonised rules on artificial intelligence

    Official Journal of the European Union

    Articles 3 and 25 define the provider and deployer roles. Article 50 assigns separate marking and disclosure duties.

    Checked 20 August 2026

  2. 02
    Guidelines for providers of general-purpose AI models

    European Commission

    The Commission states who becomes a general-purpose model provider and when its enforcement powers apply.

    Checked 20 August 2026

  3. 03
    Transparency obligations under Article 50 of the AI Act

    European Commission

    The FAQ assigns machine-readable marking to providers and specified disclosure duties to deployers.

    Checked 20 August 2026

  4. 04
    AI Omnibus enters into force

    European Commission, 27 July 2026

    The Commission notice gives the amended application dates for the AI Act's high-risk provisions.

    Checked 20 August 2026

  5. 05
    Microsoft's business software ecosystem

    UK Competition and Markets Authority, 14 May 2026

    The case page records an open strategic market status investigation and no designation or infringement finding.

    Checked 20 August 2026