OK, so define it for us, please. Because, once again, this thread is talking about introducing laws about "AI". OP was talking about LLMs you say - So SLMs then are fine? If not, then where is the boundary? If they're fine then congratulations you have created a new industry of people pushing the boundaries of what SLMs can do, as well as how they are defined.
Laws are built on definitions and this hand-wavy BS is how we got nonsense like the current version of the AI act.