AI Governance Study

AIGP Question of the Day — 1 September 2026

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1 September 2026

A retailer licenses a third-party demand-forecasting system, fine-tunes it on its own sales data, and sells access to other retailers under its own brand. From a governance and regulatory perspective, what has the retailer most likely become?

  1. A deployer, because it merely operates a system built by another company
  2. A provider, because it substantially modified the system and rebranded it
  3. A distributor, because it makes a third party's system available on the market
  4. A processor, because it handles sales data on the original vendor's behalf
Answer: A provider, because it substantially modified the system and rebranded it
Substantially modifying a system and marketing it under one's own name are the classic triggers that convert a purchaser into a provider carrying full provider obligations (b). A deployer merely uses a system under its own authority, whereas the retailer modified and resold it (a). A distributor supplies a system to the market without modification or rebranding (c). Processor is a data-protection role for entities acting on a controller's instructions, and the retailer determines its own purposes (d).

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