Artificial Intelligence (AI) is hot and happening and has become an integral part of business operations. While the rise of AI creates significant opportunities, it also brings important legal challenges.
The European Union was the first jurisdiction to adopt a comprehensive regulatory framework for AI: the AI Act of 13 June 2024. Although the AI Act entered into force on 1 August 2024, its various provisions are becoming applicable in different phases.
The AI Act imposes obligations not only on providers and distributors of AI systems, but also on deployers, including employers that allow their employees to use AI systems in the context of their employment relationship.
Did you know, for example, that an employer:
- Must take measures to ensure that its employees possess the necessary skills, knowledge and understanding to make informed use of AI systems and to be aware of the opportunities and risks associated with AI, as well as the potential harm it may cause?
- May not use AI systems to infer the emotions of employees in the workplace?
In addition, the provisions relating to high-risk AI systems are expected to become applicable on 2 December 2027. Under the AI Act, the following AI systems, among others, are classified as high-risk when used by employers:
(i) AI systems intended for the recruitment or selection of new employees.
(ii) AI systems used to make decisions regarding employees’ working conditions, promotion, or the termination of contractual relationships. This also includes AI systems that allocate tasks based on individual behaviour, personal traits or characteristics, or that are used to monitor and evaluate employees’ performance and conduct.
The use of such high-risk AI systems entails a range of obligations for both providers and deployers. For example, deployers must ensure an appropriate level of transparency towards the employees and job applicants to whom these systems are applied.
The European Parliament and the Council of the European Union recently adopted legislation postponing the application of these provisions concerning high-risk AI systems until 2 December 2027.
This deferred application gives employers additional time to prepare their organisations and develop an AI policy. Employers would therefore be well advised to assess the use of AI within their organisation in a timely manner in order to mitigate future risks.
Do you have questions about the practical implementation of an AI policy within your organisation? Do not hesitate to contact us. Astrea will be pleased to assist you with tailored legal advice.