31 CFR § 850.202 - AI system.
---
identifier: "/us/cfr/t31/s850.202"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "31 CFR § 850.202 - AI system."
title_number: 31
title_name: "Money and Finance: Treasury"
section_number: "850.202"
section_name: "AI system."
chapter_name: "OFFICE OF INVESTMENT SECURITY, DEPARTMENT OF THE TREASURY"
part_number: "850"
part_name: "PROVISIONS PERTAINING TO U.S. INVESTMENTS IN CERTAIN NATIONAL SECURITY TECHNOLOGIES AND PRODUCTS IN COUNTRIES OF CONCERN"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "50 U.S.C. 1701 E.O. 14105, 88 FR 54867, 31 U.S.C. 321."
regulatory_source: "89 FR 90462, Nov. 15, 2024, unless otherwise noted."
cfr_part: "850"
---
# 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) of this section.