What Should Employers Expect From The EU AI Act?

AI is increasingly revolutionizing the way businesses handle recruitment, hiring, management and employee monitoring etc. AI solutions are already adept at personalizing employee experiences, such as benefits and training, streamlining HR processes throughout the employment lifecycle, boosting efficiency and significantly reducing administrative burdens. Additionally, AI provides critical workforce insights, facilitating data-driven decision-making and management. However, these advancements also bring potential risks related to discrimination, protection of privacy, and other fundamental rights that employers must carefully manage.

As the EU AI Act entered into force on 2 August 2024 and should generally be applicable 24 months after its entry into force (with several exceptions), it is crucial to define the role of employers in the AI chain to ensure understanding of the obligations that they must fulfil. While the Act includes provisions on extraterritorial