AI for demand forecasting and planning: does it fall under the AI Act?
AI for demand forecasting falls under the AI Act, but is usually not a high-risk system. If the same planning drives decisions about staff, Annex III may apply. Function and impact are decisive.
Short answer: AI for demand forecasting and planning is an AI system within the meaning of the AI Act, but it does not by itself fall into the high-risk category. Whether heavier obligations apply depends on what the output is used for โ not on the term "AI planning".
An AI system, but not automatically high-risk
The AI Act (Regulation (EU) 2024/1689) defines an AI system broadly in Article 3: a machine-based system that infers, from input, outputs such as predictions or recommendations. Software that forecasts demand, inventory, or capacity usually meets that definition. That does not make such a system high-risk. The AI Act is risk-based: only practices on the prohibited list and systems meeting the criteria of Article 6 combined with Annex III, or that are a safety component under Annex I, count as high-risk. Pure demand forecasting for purchasing, production, or logistics capacity is not, as such, listed in Annex III.
When can Annex III still come into play?
The distinction lies in how the output is used. Annex III classifies, among other things, AI used for employment-related decisions โ recruitment, task allocation, and steering work performance. A forecast that merely sketches a demand curve does not touch this. But if the same planning automatically assigns shifts and rosters, or decides which employee gets which task, the system may fall into that category and count as high-risk. Critical infrastructure (Annex III, point 2) and access to essential services are also points of attention. What matters is the actual function and the impact on people, not the product name.
What applies now, and what later?
Regardless of the risk classification, the AI literacy duty (Article 4) has applied since 2 February 2025: anyone deploying AI must ensure that the people involved have sufficient understanding of the system and its limits. This also affects teams that plan on the basis of AI predictions. The Annex III high-risk obligations and transparency rules (Article 50) have later, phased application dates; consult the regulation and the European Commission for the current deadlines. So document now how your planning works and what the output is used for.
Read more: AI Act: timeline of obligations. Take the scan.
Sources
- https://eur-lex.europa.eu/eli/reg/2024/1689/oj
Regulation (EU) 2024/1689 (AI Act); definitions (Art. 3), high-risk (Art. 6 and Annex III), AI literacy (Art. 4). - https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai
European Commission โ overview of the regulatory framework for AI.
Read next
Does my route-optimisation AI fall under the AI Act?
An AI that purely optimises routes or trips is usually not a high-risk system under the AI Act. If the same AI also drives task allocation or workers' performance, it does fall under Annex III. AI literacy already applies now.
Is my planning algorithm high-risk under the AI Act?
Software that drives rosters, trip planning or recruitment falls under Annex III of the AI Act and counts as high-risk. The heaviest duties apply from 2 Dec 2027; AI literacy already applies now.
AI for dynamic freight pricing: what does the AI Act say?
AI that sets freight prices dynamically is not as such on the AI Act's high-risk list. AI literacy and transparency duties do apply, and the classification can shift where there are effects on individuals.