The EU AI Act – what should you be doing?
HR Dept
Love it or hate it, AI is becoming more and more prominent in our lives – and that includes our workplaces. Regardless of your stance on AI, the upcoming EU AI Act will probably impact your business. So it is important to learn about the act ahead of time to ensure you’re not caught out – there are costly financial penalties, reaching up to €30 million for larger businesses!
What is the EU AI Act?
The EU AI Act is set to be the world’s first legal framework on AI. It’s already coming into play, with several regulations coming into force earlier this year. The act will properly fall into place on 2nd August and your business will likely be impacted by its requirements.
The act aims to promote safe and ethical use of AI, ensuring trustworthy and reliable AI systems across Europe. Whilst the act intends to provide security for professional AI systems, forward-thinking business owners like yourself can use it to your advantage: encouraging innovation across your company to propel your business ahead of the rest of the world.
Preparing for the EU AI Act
The EU AI Act includes an extensive list of requirements, and failure to adhere to these could be costly. From understanding regulations to incorporating relevant procedures, you’ll want to protect your business ahead of the AI Act’s implementation in August.
AI may seem purely technological, but as we are all becoming aware it intersects with much of the world, including employment and HR: from the hiring process, customer experience, or even the content your staff are generating.
Since February, it’s already been made compulsory for your staff to be properly trained on AI usage. To do this effectively, you should implement a thorough AI policy across all levels of your business to ensure consistency, transparency and protection.
Identify your AI systems
The EU AI Act categorises different AI systems based on their risk level. If your company uses AI, you’ll have to report which category your systems fall into – this will determine the regulations you must follow.
Unacceptable risk
These AI systems are considered a clear threat to safety, livelihood or human rights and are entirely banned by the EU AI Act.
High risk
High risk AI systems could pose a serious risk to health, safety or fundamental rights. This might sound extreme, but it could actually cover AI systems you use. AI employment tools, like CV sorting software, fall into this category because of their potential to discriminate.
If you use high risk AI, you’ll have to ensure its properly monitored. You’ll also have to establish a risk management system to mitigate any risks. For AI employment tools, this could include providing representative and unbiased datasets for the AI systems.
Limited and minimal risk
These systems are deemed to have limited or no risk. Rest assured, the majority of AI systems in the EU fall into this category – and they require far less paperwork and transparency!
Be transparent
From reporting your AI system categories, to maintaining thorough documentation, transparency is at the forefront of the AI Act’s requirements. You’ll need to keep documentation of how your system operates, risk assessments, data sets used and intended purposes. You should also be prepared for periodic inspections that check if the AI systems you use are compliant.
Transparency will also be required for customers and clients – and it’s essential your staff understand this. You’ll have to disclose if users are interacting with AI systems (like chatbots) and in cases of generative AI, you must clearly label content that is AI-generated.
Implement security measures
Under the AI Act, you’ll be required to implement thorough security measures to defend against malicious attacks and protect data. Whether it’s during recruitment or for any part of performance appraisals, if your AI systems process personal data you’ll have to ensure compliance with GDPR: adhering to data minimisation and purpose limitation principles to protect privacy rights. This won’t be compulsory until August, but it’s worth incorporating now to keep your business safe.
Get support
AI is evolving at such a rapid pace that it can feel impossible to keep up. Whilst you’ll want to stay compliant with the new act, it might feel like there’s no time to learn the intricacies of all the regulations. That’s where we come in.
Whether you need support developing a thorough AI policy or just want some advice about the upcoming AI Act, we’re here to help across all HR aspects. Get in touch today to see how we can protect your business amidst AI and its laws.
