Why Cloud-Based AI Scanners Violate EU AI Act Data Sovereignty

Why Cloud-Based AI Scanners Violate EU AI Act Data Sovereignty Introduction The European Union's AI Act represents a significant milestone in the regulation of artificial intelligence (AI). With its robust framework designed to ensure responsible and ethical deployment of AI systems, Article 10 of the AI Act addresses data sovereignty concerns. This article argues that cloud-based AI scanners, which upload proprietary code to Software as a Service (SaaS) APIs for compliance scanning, violate data sovereignty principles outlined in Article 10. We advocate for local execution of these scans to mitigate supply-chain vulnerabilities and ensure compliance with EU regulations. Article 10 of the EU AI Act Article 10 of the EU AI Act stipulates that "data related to personal data or sensitive data shall be processed only by controllers established in the Union." This provision is designed to protect data sovereignty within the European Economic Area (EEA) and prevent unauthorized access or mis