What is KlarvoEngine?

KlarvoEngine is Klarvo's regulatory intelligence engine. It analyses your AI system through a 3-pass classification pipeline and produces an article-cited compliance memo with obligations, deadlines, and recommended controls — in under 60 seconds.

What is the EU AI Act?

The EU AI Act (Regulation 2024/1689) is the world's first comprehensive AI regulation. It classifies AI systems by risk level and imposes obligations on providers and deployers of AI systems operating in the EU.

Any organisation that provides or deploys AI systems affecting people in the EU — regardless of where the organisation is based. This includes websites with AI chatbots, companies using AI analytics, and businesses integrating AI models into their products.

Prohibited AI practices have been enforceable since February 2025. GPAI model obligations since August 2025. Article 50 transparency and most remaining obligations apply from August 2, 2026.

What are the penalties?

Up to €35 million or 7% of global turnover for prohibited practices. Up to €15 million or 3% for transparency and other violations. For SMEs, the penalty is whichever amount is lower.

3-Pass Pipeline Explained

KlarvoEngine analyses every AI system through three distinct passes, each building on the last.

Pass 1: Understand

You provide 4 fields (name, vendor, department, description). KlarvoEngine extracts:

Data Point

What It Captures

Core function

What the system actually does

Affected persons

Employees, customers, candidates, patients, students, public

Deployment regions

EU, UK, US, other

Human involvement

HITL (human approves before action), HOTL (human monitors), HOOTL (fully automated)

Output types

Predictions, recommendations, decisions, classifications, generated content, scores

Workplace impact

Whether it affects employees or working conditions

Customer-facing

Whether end users interact with or are affected by the system

AI system test

Whether it meets the Article 3(1) definition

Pass 2: Classify

Maps understanding data against the full EU AI Act:

Prohibited practices — all 8 Article 5 checks

High-risk assessment — all 8 Annex III domains

Transparency — which Article 50 sub-articles apply

GPAI model check — foundation model identification and provider obligations

Industry rules — sector-specific overlaps (MDR, MiFID II, DORA, Platform Workers Directive)

Final risk level — Prohibited, High-Risk, Limited, or Minimal

Every determination includes article citations.

Pass 3: Verify

Quality-checks the classification:

Edge case matching — compares against 70+ pre-loaded scenarios

Misclassification detection — catches common errors (e.g., healthcare chatbot classified as "limited risk" when triage makes it high-risk)

Consistency check — risk level consistent with obligations

Confidence scoring — assigns confidence level

Ambiguity flags — notes where classification depends on deployment context

After Classification

KlarvoEngine generates:

Classification memo with article citations

Auto-generated obligations with deadlines

Smart control selection (only applicable controls)

Policy drafts (AI Acceptable Use, Worker Notification, Training Curriculum)

Article 50 disclosure text

25+ system fields auto-populated

Re-Classification

When your system changes, re-classify at any time. KlarvoEngine runs the full pipeline again and cascades changes to obligations, tasks, policies, controls, and disclosure text automatically.

How KlarvoEngine Classification Works

Industry-Specific Frameworks

Understanding Your Classification Memo