What do HR leaders need to know about the EU AI Act?

What do HR leaders need to know about the EU AI Act?

Author: Jill Barth

This month, the European Union formally adopted its AI Act. HR leaders around the world, even those without a presence in Europe, can look to this ruling as a framework for minimizing the risk of artificial intelligence at work.

The legislation categorizes AI applications into risk tiers: unacceptable, high, limited and minimal. Much of HR tech that deals with employment is considered high-risk, according to the definitions of the AI Act.

According to the legislation, high-risk AI systems must undergo rigorous pre-market obligations to ensure the quality of input datasets to prevent discriminatory outcomes. There must also be appropriate human oversight, high levels of security, clear traceability of information and more.

So, what do HR leaders need to know about the EU AI Act? For many companies, the onus will be on understanding vendor controls, says Asha Palmer, senior vice president of compliance at Skillsoft. Some employers are forming artificial intelligence governance teams to build best practices around evaluating risk. Palmer believes the human resource industry is in a strong position to contribute to these governance structures.

HR leaders should understand how work tech platforms are being used and how they could be used in the future, says Palmer. If any appear to be high-risk (which many HR tech systems will be), the vendor needs to be held to the standards set forth by EU guidelines, specifically if the organization has a presence in Europe.

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