Artificial Intelligence at the workplace – new rules from the EU have entered into force

AI has created a sea of possibilities worldwide, but it has also introduced new challenges and risks for those who use it. Therefore, the new EU rules aim to protect citizens’ rights.

The greater the risk, the stricter the requirements

The rules will come into effect continuously until August 2027 and will impact the entire company – including the HR department. The greater the risk the AI system poses, the more requirements will be demanded from the company using the system.

• AI systems with high risk: These include systems used to recruit or select applicants or make employment decisions, such as promoting or terminating an employee. Companies using these systems must ensure that they are used in accordance with the instructions for use, that people with the proper training and skills oversee them, and that employees are informed that the systems are being used on them.
  
  
• AI systems with limited risk: These are the vast majority of AI systems in use today, such as personal assistants, chatbots, and advertisements with AI. Companies using these systems do not have to comply with any new requirements and rules but must ensure that they use the systems in accordance with existing legislation, such as GDPR.
  
  
• AI systems with minimal risk: These are, for example, large generative AI models such as ChatGPT, which can be used for general purposes such as solving different tasks and creating new content. Companies using these systems do not have to comply with new requirements or regulations.

Some AI systems will also become completely banned, such as systems that can classify an employee’s personality traits over time. The ban will apply from February 2025. 

IUNO’s opinion

Companies must be aware, if any of their systems uses AI, and if so, whether any of the systems used will be banned under the new EU rules or fall under the high-risk level. Most AI systems used for HR purposes will be high-risk, and companies will have to comply with the new rules from August 2026 or 2027, depending on the system in question.

IUNO recommends that companies familiarise themselves with the new rules, which carry heavy fines of up to 7% of the company’s total global annual turnover. Apart from the new rules, AI systems will still have to comply with the general rules, such as rules on discrimination and data protection. The same rules apply when using AI systems for manual personnel management.

[Regulation (EU) 2024/1689 of 13 June 2024 about artificial intelligence]