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.

Contract Management — Klarvo Docs

Contract Management

Contracts with AI vendors are a critical piece of compliance infrastructure. They define your rights and obligations, including access to documentation, logging data, incident notification, and instructions for use — all of which are needed for Article 26 deployer compliance.

What Klarvo Tracks

For each vendor contract:

Field

Description

Contract Type

SaaS subscription, API agreement, license, custom development

Start Date

When the contract began

End Date

When it expires or renews

Auto-Renewal

Whether it auto-renews (and the notice period)

Value

Annual contract value (optional, for internal reference)

Key Terms

Summary of relevant provisions

Document

Uploaded contract PDF or URL

DPA Status

Whether a Data Processing Agreement is in place

AI-Specific Clauses

Whether the contract addresses AI Act requirements

Adding a Contract

Navigate to the vendor profile

Go to the Contracts tab

Click Add Contract

Fill in the details above

Upload the contract document

Save

AI-Specific Contract Provisions

When reviewing or negotiating vendor contracts, check for these AI Act-relevant provisions:

Provision

Why It Matters

Instructions for use

Article 26 requires deployers to use AI according to instructions — the contract should reference or include them

Logging access

You need access to system logs; the contract should specify what logs are available and how to access them

Incident notification

The contract should require the vendor to notify you of material issues

Transparency support

If your transparency obligations depend on vendor capabilities, the contract should address this

Data processing terms

Where and how data is processed, stored, and deleted

Change notification

Vendor should notify you of material changes to the AI system

Audit rights

Ability to audit or request evidence of vendor compliance (where practical)

Termination for non-compliance

Right to terminate if the vendor fails to meet AI Act-related obligations

Renewal Workflow

Reminder: Klarvo sends a reminder 60 days before contract end date

Review trigger: A task is created: "Review vendor contract and due diligence before renewal"

Due diligence refresh: Update the vendor's due diligence checklist

Request updated attestations: Ask for current compliance statements

Renew or replace: Update the contract record with the new agreement

Update linked systems: If anything changed, trigger reassessment of linked AI systems

Best Practices

📋 Upload all contracts: Even click-through SaaS terms should be documented

📅 Track all dates: Start, end, renewal notice deadlines

🔍 Review AI provisions: Check whether contracts address AI Act requirements

🔄 Refresh at renewal: Use contract renewal as a trigger for complete vendor review

🔗 Link to systems: Ensure every vendor-based AI system references its contract