SkarpChapter 19 of 25
SME Support and the Institutions of AI Governance
The Act’s governance system combines practical support for smaller operators with coordination at Union and national levels. Articles 62–70 establish reduced burdens, expert institutions and independent authorities expected to make implementation consistent and technically credible.
The Governance Map: Support, Coordination, and Enforcement
A layered governance system
Articles 62-70 combine practical support for operators with Union-level coordination, expert advice, and national enforcement capacity.
Read the provisions by function
Support: Articles 62-63. Union governance: Articles 64-69. National competent authorities: Article 70.
Currency note
A July 8, 2026 Digital Omnibus amendment is signed pending publication. It is not yet in force, so this module teaches the original text.
Article 62: Practical Support for SMEs, Start-ups, and Deployers
Sandbox priority is conditional
Member States shall provide eligible Union-established SMEs and start-ups with priority access to AI regulatory sandboxes. Eligibility conditions and selection criteria still apply.
Four Member State actions
Member States shall provide tailored training, communication channels for advice and queries, and facilitation of SME participation in standardisation development.
Fees and AI Office support
Conformity-assessment fees must reflect SME needs. The AI Office supplies templates, a single information platform, awareness campaigns, and procurement best-practice work.
Quiz: Sandbox Access and Fee Setting
Choose the answer that most accurately reflects Article 62.
Which statement is correct under Article 62?
- Every SME automatically has a right to enter an AI regulatory sandbox, regardless of eligibility criteria.
- Eligible SMEs and start-ups with a registered office or branch in the Union receive priority access, while other eligible SMEs may still access the sandbox.
- Only the AI Office may organise training for SMEs and deployers.
- Conformity-assessment fees must be identical for all providers.
Show Answer
Answer: B) Eligible SMEs and start-ups with a registered office or branch in the Union receive priority access, while other eligible SMEs may still access the sandbox.
Article 62(1)(a) makes priority access conditional on fulfilling eligibility conditions and selection criteria. It expressly says that priority does not preclude other eligible SMEs and start-ups from access. Member States, not only the AI Office, have training duties, and Article 62(2) requires proportionate fee reductions for SME providers.
Article 63: A Narrow Simplification for Microenterprises
Who may use the simplification?
Only a microenterprise under Recommendation 2003/361/EC that has no partner enterprises or linked enterprises may use Article 63(1).
What is simplified?
Only certain elements of the Article 17 quality management system may be simplified, subject to Commission guidelines.
What is not waived?
Article 63 is not an exemption from other obligations. It preserves protection levels and compliance with high-risk AI system requirements.
Articles 64-65: The AI Office and the European AI Board
The AI Office
Article 64 assigns the Commission a mandatory task: it shall develop Union AI expertise and capabilities through the AI Office.
Board membership
The Board has one representative per Member State. The EDPS is an observer; the AI Office attends but does not vote.
Coordination architecture
Representatives serve three-year terms, renewable once. The Board must create standing sub-groups for market surveillance and notifying authorities.
Article 66: What the Board Does
The Board's mandatory purpose
The Board shall advise and assist the Commission and Member States so that application of the Regulation is consistent and effective.
Examples of Board powers
It may coordinate authorities, share expertise, harmonise administrative practices, issue opinions, support literacy, and facilitate sandbox cooperation.
Shall versus may
Article 66 makes the overall advisory-and-assistance role mandatory. The detailed activities are framed as things the Board may do.
Articles 67-69: Stakeholder Advice and Independent Scientific Expertise
A balanced advisory forum
The forum must balance industry, start-ups, SMEs, civil society, and academia, as well as commercial and non-commercial interests.
Independent scientific panel
Scientific-panel experts must demonstrate AI expertise, independence from providers, and an ability to work diligently, accurately, and objectively.
Alerts and enforcement support
The panel can alert the AI Office to possible Union-level systemic risks. Member States may call upon panel experts for enforcement support.
Article 70: National Authorities, Expertise, and Accountability
Minimum national structure
Each Member State shall have at least one notifying authority and at least one market-surveillance authority, acting independently, impartially, and without bias.
A single point of contact
A market-surveillance authority shall serve as the single point of contact. Public electronic contact information was due by August 2, 2025.
Capacity is a legal requirement
Authorities need adequate resources and personnel with deep AI, data, privacy, cybersecurity, fundamental-rights, safety, standards, and legal expertise.
Reporting and guidance
Member States shall report on resources every two years after August 2, 2025. Authorities may guide SMEs and start-ups, with cross-law consultation where appropriate.
Quiz: National Competent Authorities
Test whether you can distinguish mandatory institutional requirements from optional support functions.
Which combination correctly reflects Article 70?
- A Member State may choose whether to have a notifying authority, and national authorities need only legal expertise.
- Each Member State shall have at least one notifying authority and one market-surveillance authority; personnel shall include in-depth understanding of the listed AI, data, privacy, cybersecurity, rights, and safety areas.
- The single point of contact must be a private standards body, and resource reporting is optional.
- National authorities must provide guidance to every operator, even where other Union law applies without consultation.
Show Answer
Answer: B) Each Member State shall have at least one notifying authority and one market-surveillance authority; personnel shall include in-depth understanding of the listed AI, data, privacy, cybersecurity, rights, and safety areas.
Article 70(1) requires at least one notifying authority and one market-surveillance authority. Article 70(3) specifies broad technical and legal expertise. The single point of contact must be a market-surveillance authority, resource reporting is mandatory, and Article 70(8) says authorities may provide guidance while requiring consultation with other relevant Union-law authorities as appropriate.
Flashcards: Core Rules from Articles 62-70
Flip each card and explain the rule in your own words before checking the answer.
- Article 62 sandbox rule
- Member States shall provide eligible SMEs and start-ups with a registered office or branch in the Union priority access to AI regulatory sandboxes. Priority does not exclude other eligible SMEs or start-ups.
- Article 62 fee rule
- Conformity-assessment fees under Article 43 shall take account of SME provider interests and needs, including reducing fees proportionately to size, market size, and other relevant indicators.
- Article 63 simplification
- Eligible microenterprises without partner or linked enterprises may comply with certain Article 17 quality-management elements in a simplified manner. This is not a general exemption.
- Article 64 AI Office
- The Commission shall develop Union expertise and capabilities in AI through the AI Office.
- Article 65 Board composition
- The Board has one representative per Member State. The EDPS is an observer, and the AI Office attends without voting.
- Article 66 Board purpose
- The Board shall advise and assist the Commission and Member States to facilitate consistent and effective application of the Regulation.
- Article 67 meeting frequency
- The advisory forum shall hold meetings at least twice a year.
- Article 68 independence
- Scientific-panel experts must demonstrate independence from any provider of AI systems or general-purpose AI models and must perform tasks with impartiality and objectivity.
- Article 69 Member State access
- Member States may call upon scientific-panel experts to support enforcement activities. Fees may be required under the Article 68(1) implementing act.
- Article 70 resource reporting
- By August 2, 2025, and once every two years thereafter, Member States shall report to the Commission on financial and human resources and assess their adequacy.
Key Terms
- AI Office
- The Commission-based body through which the Commission shall develop Union expertise and capabilities in AI under Article 64.
- systemic risk
- A possible Union-level risk connected in Article 68 to general-purpose AI models, about which the scientific panel may alert the AI Office in accordance with Article 90.
- advisory forum
- The Article 67 body that provides technical expertise and advice to the Board and the Commission and must have balanced stakeholder membership.
- microenterprise
- An operator within the meaning of Recommendation 2003/361/EC that may qualify for the limited Article 63 simplification if it has no partner or linked enterprises.
- scientific panel
- The scientific panel of independent experts established through an Article 68 implementing act to support enforcement activities under the Regulation.
- notifying authority
- A national competent authority of which each Member State must have at least one under Article 70.
- AI regulatory sandbox
- A framework referred to in Article 62 through which eligible SMEs and start-ups may receive priority access, subject to eligibility conditions and selection criteria.
- single point of contact
- A market-surveillance authority designated by a Member State under Article 70 to act as the contact point for the Regulation.
- market surveillance authority
- A national authority designated or established under Article 70. One such authority in each Member State shall act as the single point of contact.
- European Artificial Intelligence Board
- The Board established by Article 65, composed of one representative per Member State, which advises and assists the Commission and Member States.