Go/No-Go Decision Framework

Principle

Every AI system of the BAUER GROUP undergoes a cost-benefit assessment before EU market launch. The AI Act does not prescribe such an assessment, but as an organisation we autonomously decide which products we distribute and where.

Core Rule

Disproportionate regulatory effort = no EU distribution. We are not obliged to offer every product in the EU. Where the EU makes innovation more expensive through regulation, we distribute the product in markets without these constraints.

Decision Matrix

┌─────────────────────────────────────────────┐
│ Does the product contain an AI component?   │
│                                             │
│   NO  → AI Act not applicable → GO          │
│   YES ↓                                    │
├─────────────────────────────────────────────┤
│ Does the system fall under Art. 5            │
│ (prohibited)?                               │
│                                             │
│   YES → Do not develop product → STOP       │
│   NO  ↓                                    │
├─────────────────────────────────────────────┤
│ Risk classification (Art. 6, Annex III)      │
│                                             │
│   MINIMAL  → GO (no obligations)            │
│   LIMITED  → GO (transparency obligations   │
│              only)                           │
│   HIGH ↓                                   │
├─────────────────────────────────────────────┤
│ Cost-benefit assessment for high-risk        │
│                                             │
│   Compliance effort ≤ 15% of                │
│   3Y contribution margin → GO               │
│                                             │
│   Compliance effort > 15% of                │
│   3Y contribution margin → NO-GO EU         │
│   → Assess third-market distribution        │
└─────────────────────────────────────────────┘

Compliance Effort for High-Risk (estimated)

Item	One-off	Annual
Risk management system (Art. 9)	40–80h	20–40h
Data governance documentation (Art. 10)	60–120h	10–20h
Technical documentation (Art. 11, Annex IV)	80–160h	20–40h
QMS setup and evidence (Art. 17)	40–80h	20–40h
Conformity assessment (Art. 43)	40–80h	10–20h
EU database registration (Art. 49)	8–16h	4–8h
Post-market monitoring	—	20–40h
Total high-risk	268–536h	104–208h

At an internal hourly rate of EUR 120 this equates to EUR 32,160–64,320 one-off plus EUR 12,480–24,960/year — excluding external consultancy and notified body costs.

Threshold Calculation

Example: product with AI component, expected 3-year contribution margin EUR 200,000.

• 15% threshold: EUR 30,000
• Estimated compliance effort (minimum): ~EUR 57,000 (3 years)
• Result: NO-GO EU — distribution in third-country markets only

Alternatives in Case of NO-GO EU

1. Remove AI component — implement a rule-based alternative
2. Third-market distribution — APAC, MENA, Latin America
3. AI component as optional feature — EU version without AI, full version for third-country markets
4. Wait for simplification — await Digital Omnibus / delegated acts

Documentation Requirement

Every Go/No-Go decision is documented and archived in the Decision Protocol Template.