The new EU Artificial Intelligence Regulation will have a significant impact on employers and HR as early as 2025

It is called the AI Act and represents the world's first comprehensive regulation of artificial intelligence. The European regulation also introduces significant changes in human resources and labor law. Lawyers from the firm Havel & Partners explain what we can expect and what is inevitable. 

The European Union's Artificial Intelligence Regulation (AI Act) came into effect on August 2, 2024. While it will become fully effective on August 2, 2026 (excluding Article 6, Section 1, which will take effect in August 2027), certain obligations will already arise for employers this year. Overall, its main aim is to help and protect all stakeholders. AI is already playing a significant role in HR, particularly in recruitment, employee performance evaluation, and managing employment relationships. The new regulation aims for greater transparency and accountability in its use. What does this mean for HR professionals? 

Prepare for mandatory AI training starting February 2025 

One significant obligation for employers is to raise awareness and improve their employees’ understanding of artificial intelligence. Starting in February 2025, organizations will need to actively ensure that their employees understand how AI affects their work and can work effectively with these technologies. 

At this stage, the regulation does not impose penalties for failing to meet this obligation. The main goal is likely to emphasize the importance of this topic and motivate employers to prioritize AI literacy. 

The regulation categorizes AI by risk 

The AI Act classifies artificial intelligence systems based on their level of risk, dividing them into: 

  • prohibited, 
  • high-risk, 
  • limited risk, 
  • minimal risk. 

Each category is subject to different rules, many of which will impact the HR field. 

How will the AI Act affect HR? 

High-risk AI systems include tools commonly used in HR for: 

  • recruiting individuals, 
  • publishing targeted job offers, 
  • analyzing and sorting job applications, 
  • assessing candidates, 
  • evaluating employee performance and behavior. 

These AI systems will be subject to strict regulation. They must meet high standards to ensure there is no discrimination and that everything operates under transparent and fair rules. 

AI systems used in HR that fall into the high-risk category will need to be registered in a central database managed by the European Union. (Registration will be the responsibility of the system providers, not the users.) 

Companies will be required to ensure that the AI systems they use comply with the European regulation and undergo regular checks. (The AI Act does not specify a control procedure yet; we will need to wait for recommended guidelines or legislation providing more details.) Employers will also need to provide adequate information about how AI influences their decision-making processes. Employees and job applicants will have the right to challenge decisions that may have been unfair. 

What to watch out for? Manipulation is off-limits 

Prohibited forms of artificial intelligence include systems that directly manipulate human behavior or technologies that use social scoring of individuals. 

Existing restrictions under labor laws and employment services legislation will, of course, remain in place. For example, employers will generally not be allowed to request information about: 

  • racial or ethnic origin, 
  • political opinions, 
  • union membership, 
  • sexual orientation. 

It will also remain essential to ensure data security and privacy in accordance with GDPR. This applies to data processed by artificial intelligence as well.

HR's role will be crucial 

The AI regulation introduces significant changes to HR and labor law that have the potential to reshape the entire European labor market. AI can greatly streamline processes like employee recruitment and the administration of employment relationships. 

HR departments are likely to play a key role, particularly in ensuring mandatory AI training for employees starting in February 2025. They will also oversee the use of artificial intelligence to ensure that all systems comply with the new regulatory requirements. 

This article was created in collaboration with the largest Czech-Slovak law firm, HAVEL & PARTNERS, and its information is current as of October 2024. While it has been reviewed by several labor law specialists, please consider it informative and general in nature rather than a detailed guide. If your company is dealing with this issue, always consult labor law experts in your country.