ADVANT Pulse No. 4: Your Labour & Employment News

As artificial intelligence (AI) continues to transform workplaces and is becoming increasingly integrated into employment processes such as hiring, employee monitoring, and employee evaluation. When using AI, companies already need to comply with regulation including data protection and labor laws. However, they will soon also need to ensure compliance with another regulatory framework – the EU AI Act. The AI Act, published in August 2024, categorizes AI systems into risk levels, with high-risk systems subject to the most stringent requirements. With regard to these provisions, it will enter into force in August next year. 

High-Risk AI systems under the EU AI Act In a employment context, the new regulation concerns foremost: 
a) AI systems intended to be used for the recruitment or selection of natural persons, in particular to place targeted job advertisements, to analyze and filter job applications, and to evaluate candidates. 
b) AI systems intended to be used to make decisions affecting terms of work-related relationships, the promotion or termination of work-related contractual relationships, to allocate tasks based on individual behavior or personal traits or characteristics or to monitor and evaluate the performance and behavior of persons in such relationships.

The most important requirements for high-risk AI systems at a glance 

The providers of high-risk AI systems bear the following obligations: 

• Quality and risk management
• Technical documentation, record-keeping and logging obligations
• Consideration of accuracy, robustness, cybersecurity and accessibility during development
• Transparency and information obligations
• Registration in the relevant EU database and cooperation with the competent authority

Those who only deploy of high-risk AI systems generally have to fulfil fewer requirements than providers. However, there may be scenarios in which they can be subject to the same extensive obligations as the providers of high-risk AI systems.

Looking ahead, the AI Liability is poised to complement the EU AI Act. It aims to streamline legal pathways for individuals harmed by AI systems, including in employment related situations. However, the legislative process is still in its early stages and only rarely does a directive emerge from the legislative process in the form in which it was presented by the EU Commission.