AI Governance & EU

EU AI Act third-party obligations: what suppliers and customers must agree in writing

The EU AI Act does not stop at the company that builds an AI system. Article 25 sets out when a third party becomes the provider, and requires a written agreement between a high-risk system’s provider and the third parties that supply components, tools or services into it. That agreement is a contract, and it needs to be drafted.

Eliga Consultancy 18 October 2026 AI Governance, EU, AI Act 7 minute read

Searches for the EU AI Act’s third-party obligations are rising, and the answer sits in the value chain provisions. Article 25 of Regulation (EU) 2024/1689 says when a distributor, importer, deployer or other third party is treated as the provider, what the original provider must hand over, and what the written agreement with component suppliers must cover. Articles 26 and 53 add duties for deployers and for general-purpose AI model providers. This article sets out what each provision says, where the timetable now stands, what could not be verified, and what to put in the contract.

01

Who counts as a third party, and when it becomes the provider

Scope and Article 25(1)

A distributor, importer, deployer or other third party is treated as the provider of a high-risk AI system if it rebrands it, substantially modifies it, or changes its intended purpose so that it becomes high-risk.

The AI Act is written around roles. The provider is the organisation that develops a system and puts it on the market or into service. Around it sit deployers who use the system, importers and distributors who bring it to the EU market, and the third parties who supply the models, tools, data services and components that a system is built from.

Article 25 is the provision that deals with how those roles interact. It is headed responsibilities along the AI value chain, and it does two different things. It says when a party in the chain is treated as the provider of a high-risk system, and it says what the provider and its suppliers must agree between themselves.

Article 25(1) says that any distributor, importer, deployer or other third party shall be considered to be a provider of a high-risk AI system in three situations. The first is where it puts its name or trademark on a high-risk system already on the market or in service. The second is where it makes a substantial modification to a high-risk system and the system remains high-risk. The third is where it changes the intended purpose of an AI system that was not high-risk so that it becomes high-risk under Article 6.

The consequence is that the full set of provider obligations moves to that party. A reseller that puts its own brand on a third-party high-risk system, or a customer that repurposes a general tool for a high-risk use, takes on duties it may not have priced.

The contract question follows directly. Resale, white-label and customisation terms should say who is the provider for the purposes of the Act, who can modify the system, and what happens to responsibility if a customer’s use changes its intended purpose.

A rebrand, a substantial modification or a change of intended purpose can turn a reseller or a customer into the provider.

02

The written agreement with component suppliers

Article 25(4)

The provider of a high-risk system and a third party supplying AI components, tools, services or processes for it must specify, by written agreement, the necessary information, capabilities, technical access and other assistance.

Article 25(4) requires the provider of a high-risk AI system and the third party that supplies AI systems, tools, services, components or processes used or integrated in it to specify, by written agreement, the necessary information, capabilities, technical access and other assistance. The purpose is to let the provider meet its own obligations under the Act.

There is a carve-out for third parties that make tools available to the public under a free and open-source licence. The Commission’s AI Act Service Desk notes that general-purpose AI models are excluded from that carve-out.

Article 25(4) also provides that the AI Office may develop and recommend voluntary model terms for these contracts. No such model terms were found published as at 18 October 2026, so the drafting is currently left to the parties.

Article 25(5) adds that the information and access duties do not affect the protection of intellectual property, confidential business information and trade secrets. Both sides should expect that tension to appear in negotiation.

03

What the initial provider must hand over

Article 25(2) and Article 53(1)(b)

The initial provider must cooperate closely with a new provider, and a general-purpose AI model provider must document its model for the providers who integrate it.

Where a third party becomes the provider under Article 25(1), Article 25(2) says the initial provider shall closely cooperate with the new provider. According to the Commission’s AI Act Service Desk text, that covers making the necessary information available, informing the new provider of known limitations and failure modes, and giving targeted technical access, including for testing and validation. It does not apply where the initial provider clearly excluded its system from being changed into a high-risk one.

For general-purpose AI models, Article 53(1)(b) requires the model provider to prepare, keep up to date and make available documentation to providers of AI systems that intend to integrate the model. The documentation must help them understand the model’s capabilities and limitations and meet their own obligations, and it must include at least the elements listed in Annex XII. Intellectual property and trade secrets stay protected. Free and open-source model providers are exempt from the documentation duty under Article 53(2), but the exemption does not apply to models with systemic risk.

For a downstream builder, these provisions are leverage. A model or component supplier cannot simply refuse to share information the Act requires it to provide, and a contract should say in what form and by when the information arrives.

04

Deployers: duties that reach suppliers

Article 26

Deployers of high-risk systems must use them per instructions, assign human oversight, monitor, keep logs and report, and each of those duties depends on information from the supplier.

Article 26 sets out deployer obligations for high-risk systems. In summary, a deployer must use the system according to its instructions for use, assign human oversight to people with the necessary competence, training and authority, ensure input data is relevant and sufficiently representative where it controls that data, monitor operation and report risks and serious incidents, and keep the logs the system generates for at least six months.

Each of those duties depends on the supplier. A deployer cannot follow instructions it has not been given, cannot monitor without the right outputs, and cannot keep logs it cannot access. The practical implication is that a deployer’s supplier contract should secure the instructions for use, the log access and the incident notification route that Article 26 assumes.

This summary reflects the main paragraphs of Article 26. The exact wording of each paragraph, and the duties of authorised representatives, importers and distributors in Articles 22 to 24, should be read in the Regulation itself.

05

Where the timetable stands, and what is not verified

Status at 18 October 2026

The Commission states that the Digital Omnibus entered into force on 27 July 2026, with stand-alone high-risk rules applying from 2 December 2027.

The AI Act entered into force on 1 August 2024. The Commission states that the obligations for general-purpose AI models became applicable on 2 August 2025. The Commission’s FAQ also states that the Digital Omnibus on AI entered into force on 27 July 2026, with rules for stand-alone high-risk systems applying from 2 December 2027 and rules for AI embedded in regulated products applying from 2 August 2028.

Several points should be checked against the Official Journal before relying on this article. The Official Journal reference of the amending regulation was not confirmed. It was also not confirmed whether the Digital Omnibus changes the wording of Article 25 itself. The Service Desk text of Article 99(4) lists Article 25(2) and (4) among the provisions for which administrative fines of up to EUR 15m or 3% of worldwide turnover can apply, but that reading should be confirmed against the Official Journal text.

The timetable gives time to prepare, not a reason to wait. Contracts signed now will still be in force when the high-risk obligations apply, so the written agreement Article 25(4) requires is better drafted in the original contract than added later.

06

What to put in the contract

Contract action

Write the Article 25 duties into supplier, reseller and customer agreements now: who is the provider, what information and access flow, and who bears the cost.

The following is drafting advice, not a statement of what the Act requires of any particular agreement. It should be checked against the consolidated text of the Regulation as amended.

  • Role allocation, stating which party is the provider, deployer, importer or distributor for each system, and what happens if rebranding, modification or a change of intended purpose changes that role.
  • An Article 25(4) schedule, listing the information, capabilities, technical access and other assistance the supplier will provide, with timescales, formats and a named contact.
  • Change and notice terms, requiring the supplier to tell the provider of model updates, new limitations or failure modes, and giving the provider the right to suspend or replace a component that no longer supports its compliance.
  • Logs, instructions and incident routes, so a deployer receives the instructions for use, log access and incident notification that its own obligations assume.
  • Confidentiality and cost allocation, balancing the Act’s information duties against trade secret protection, and settling who bears the cost of documentation, testing access and regulatory requests.

Questions this raises

Six questions this development tends to prompt, answered directly.

What are the EU AI Act’s third-party obligations?

Article 25 sets out responsibilities along the AI value chain. It says when a distributor, importer, deployer or other third party is treated as the provider of a high-risk system, and it requires a written agreement between the provider and third parties that supply components, tools, services or processes into the system.

When does a third party become the provider of a high-risk system?

Under Article 25(1), when it puts its name or trademark on a high-risk system already on the market or in service, makes a substantial modification and the system stays high-risk, or changes the intended purpose of a non-high-risk system so that it becomes high-risk under Article 6.

What must the written agreement under Article 25(4) cover?

It must specify the necessary information, capabilities, technical access and other assistance that the third-party supplier will provide, so that the provider of the high-risk system can meet its obligations under the Act. Free and open-source tools made available to the public are carved out.

Are there official model terms for these contracts?

Article 25(4) says the AI Office may develop and recommend voluntary model terms. No such model terms were found published as at 18 October 2026, so the contract terms are for the parties to draft.

What do general-purpose AI model providers owe the businesses that build on them?

Under Article 53(1)(b), a general-purpose AI model provider must prepare, update and make available documentation to providers of AI systems that intend to integrate the model, including at least the elements in Annex XII, while protecting intellectual property and trade secrets.

When do these obligations apply?

The obligations for general-purpose AI models became applicable on 2 August 2025. The Commission states that the Digital Omnibus entered into force on 27 July 2026, with stand-alone high-risk rules applying from 2 December 2027. Check the Official Journal text before relying on any date.

Sources

  1. European Union, Regulation (EU) 2024/1689 (Artificial Intelligence Act), Articles 25, 26 and 53, Official Journal of the European Union.
  2. European Commission, AI Act Service Desk, pages on Articles 25, 53 and 99; European Commission, Navigating the AI Act (FAQ), accessed 18 October 2026.
  3. European Commission, proposal COM(2025) 836 (Digital Omnibus on AI), 19 November 2025.

Do your AI supplier contracts say who is the provider?

Eliga provides embedded commercial and technology counsel to scaling businesses. If you build on, resell or deploy third-party AI, we can review your agreements against the Article 25 value chain duties before they become a problem.

This article is general information about the EU AI Act. It is not legal advice and does not create a solicitor-client relationship. Several points were not verified at the primary source and are flagged in the text. Take specific advice on your own arrangements.