---
kind: "section"
citation: "31 C.F.R. § 850.202"
title: "31"
number: "850.202"
heading: "AI system."
url: "https://uscodex.org/cfr/31/850.202"
---

# §850.202. AI system.


The term AI system means:

- (a) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments—i.e., a system that:
  - (1) Uses data inputs to perceive real and virtual environments;
  - (2) Abstracts such perceptions into models through automated or algorithmic statistical analysis; and
  - (3) **Uses model inference to make a classification, prediction, recommendation, or decision.**
- (b) Any data system, software, hardware, application, tool, or utility that operates in whole or in part using a system described in [paragraph (a)](#a) of this section.

## Notes

### Authority

Authority: 50 U.S.C. 1701 et seq.; E.O. 14105, 88 FR 54867, 31 U.S.C. 321.

### Source

Source: 89 FR 90462, Nov. 15, 2024, unless otherwise noted.