Employer Update: AI In Workforce Practices – Navigating The EU AI Act

Introduction

The EU AI Act (in force since 1 August 2024) takes a risk-based approach to regulating Artificial Intelligence (“AI”) systems. With AI increasingly used in recruitment, performance management, and workforce decision-making, employers should be aware of their obligations under the Act and related Irish employment and data protection law.

Risk Categories Under the AI Act

The AI Act classifies AI systems into four risk categories:

1. Unacceptable Risk (prohibited): Includes AI that infers emotions in the workplace (unless for medical/safety reasons) and biometric categorisation/social scoring systems.
2. High Risk: Systems which can have a significant harm on the health, safety and fundamental rights of people and under the AI Act such systems must have mandatory risk mitigating functions. High risk AI systems include those which impact access to employment opportunities, recruitment, and performance evaluation at work.