The European Union’s Artificial Intelligence Act (EU AI Act) has been approved and will be implemented gradually over the next two-to-three years. This significant legislation seeks to regulate the use of artificial intelligence (AI) across EU member states. Despite the UK’s departure from the EU, the Act will still influence UK businesses that engage with the EU market and employers utilizing AI systems affecting employees in the EU.
Key Aspects of the EU AI Act
HR managers in the UK need to grasp the implications of the EU AI Act as it is the first comprehensive AI legislation of its kind. This regulation is expected to set a high standard, often referred to as the ‘Brussels effect.’
Key Elements of the EU AI Act:
- Risk Classification: AI systems are divided into four risk categories: unacceptable (which includes social scoring and biometric categorization and is prohibited), high-risk, limited risk, and minimal risk. Each category comes with its own set of requirements.
- High-Risk AI Systems: These systems, which pose significant risks to health, safety, or fundamental rights, are subject to strict compliance measures. This includes conducting risk assessments, registration, risk management, human oversight, governance, technical documentation, and record-keeping. Most workplace decisions that affect employees fall into this high-risk category.
- Transparency: AI systems that interact with humans must clearly disclose their non-human nature, such as chatbots informing users that they are automated.
- Enforcement: National supervisory authorities and a European Artificial Intelligence Board will be responsible for enforcement. Non-compliance could lead to substantial fines.
Influence on UK Business Practices
Although the UK has its own AI strategy, the EU AI Act will likely shape UK attitudes towards AI regulation. UK businesses with operations in the EU or those that employ EU residents must adhere to the EU AI Act. This could prompt UK businesses to adopt similar AI governance standards to streamline operations, ensure smooth market access, and maintain compatibility.
As EU member states adjust to stringent AI transparency and safety standards, UK businesses may voluntarily implement similar measures to meet expectations and maintain consistency.
Steps for UK Employers to Prepare
To effectively respond to the EU AI Act, UK HR managers should:
- Understand the Act’s Requirements: Acquaint themselves with the classification of AI systems and the specific obligations for high-risk AI applications.
- Audit AI Tools: Evaluate whether existing AI tools and systems fall within the scope of the Act and classify them according to the prescribed risk categories.
- Engage in Consultation and Communication: Collaborate with domestic or European works councils, trade unions, and employees. Provide clear policies and information about the AI tools being used.
- Employee Training: Train staff who will interact with or be affected by the relevant AI systems.
- Develop a Governance Framework: Establish comprehensive risk management procedures, data quality, and management protocols. Ensure AI systems are transparent, explainable, and subject to human oversight where necessary.
- Coordinate Across Jurisdictions: Ensure alignment between UK and EU branches to maintain compliance across borders.
HR managers should stay updated on any amendments to the EU AI Act and any new domestic legislation that may emerge after the UK General Election to ensure ongoing compliance with evolving standards.
The EU AI Act will have significant implications not only for EU member states but also for UK employers engaged with the EU market. Understanding and preparing for these regulations is essential for maintaining compliance and responsibly leveraging AI technology.
