Which of the following is an example of a high-risk application under the EU Al Act?

A resume scanning tool that ranks applicants is explicitly classified as a high-risk AI system under the EU AI Act. This is because it falls into the domain of employment and workers' management, where AI-driven decisions can have a significant and potentially discriminatory impact on an individual's access to livelihood and fundamental rights. Such systems are listed in Annex III of the Act and are therefore subject to stringent requirements, including risk management, data governance, technical documentation, transparency, human oversight, and high levels of accuracy and security before they can be placed on the market.

B. An Al-enabled inventory management tool: This is considered a minimal-risk application as it does not directly impact individuals' safety or fundamental rights. It is a standard business optimization tool not subject to the specific obligations of the AI Act.

C. A government-run social scoring tool: This is classified as an "unacceptable risk" under Article 5 of the EU AI Act. Such systems are prohibited outright due to their potential to undermine fundamental rights and societal values, not regulated as high-risk.

D. A customer service chatbot tool: This is an example of a "limited risk" AI system. The primary legal obligation is transparency, requiring that users are clearly informed they are interacting with an AI system, not a human.

1. European Parliament. (2024). European Parliament legislative resolution of 13 March 2024 on the proposal for a regulation...on artificial intelligence (Artificial Intelligence Act). P9TA(2024)0138.

Annex III

Section 4(a): Explicitly lists as high-risk: "AI systems intended to be used for the recruitment or selection of natural persons

notably for advertising vacancies

screening or filtering applications

and evaluating candidates in the course of interviews or tests." (Supports Answer A).

Article 5(1)(c): Prohibits "AI systems for the social scoring of natural persons for a general purpose by public authorities or on their behalf." (Supports reasoning for incorrectness of C).

Article 52(1): Outlines transparency obligations for AI systems intended to interact directly with natural persons

such as chatbots. (Supports reasoning for incorrectness of D).

2. Stanford University Human-Centered Artificial Intelligence (HAI). (2024

March 14). The EU AI Act: What to Know.

This publication explains the risk-based framework

noting: "High-risk systems

such as those used in hiring... will be required to undergo a conformity assessment... Prohibited systems include social scoring by public authorities..." This corroborates the distinction between high-risk (hiring tools) and prohibited (social scoring) applications.

3. Veale

M.

& Borgesius

F. Z. (2021). Demystifying the Draft EU Artificial Intelligence Act. Computer Law Review International

22(4)

97-112. https://doi.org/10.9785/cri-2021-220402

Page 101: The article describes the risk pyramid

clearly distinguishing between "Unacceptable risk (prohibited practices)"

"High-risk"

and "Low or minimal risk" categories. It places "recruitment" in the high-risk category and "social scoring by public authorities" in the prohibited category

aligning with the final text's structure.