The EU AI Act and Employment
The EU AI Act, which entered into force in August 2024 with phased implementation through 2027, explicitly classifies AI systems used in employment, worker management, and access to self-employment as "high-risk." This means AI hiring tools face the strictest tier of requirements.
What Qualifies as High-Risk?
Any AI system used for:
- Recruitment or selection of candidates
- Making decisions about terms of work relationships
- Promotion and termination decisions
- Task allocation based on individual behavior
- Monitoring and evaluating worker performance
Key Requirements for High-Risk Employment AI
Risk Management
Implement a risk management system that identifies, analyzes, and mitigates risks throughout the AI system's lifecycle.
Data Governance
Ensure training, validation, and testing datasets are relevant, representative, and free from errors and bias.
Technical Documentation
Maintain detailed documentation of system design, development, testing, and performance.
Transparency
Provide clear instructions for deployers, including system capabilities, limitations, and intended purpose.
Human Oversight
Implement mechanisms for human oversight, including the ability to override AI decisions.
Accuracy and Robustness
Ensure AI systems maintain appropriate levels of accuracy and are resilient to errors and manipulation.
Penalties
- Prohibited AI practices: up to €35M or 7% of global turnover
- High-risk non-compliance: up to €15M or 3% of turnover
- Incorrect information: up to €7.5M or 1.5% of turnover
Timeline
- February 2025: Prohibitions on unacceptable-risk AI
- August 2025: Obligations for general-purpose AI
- August 2026: Full enforcement for high-risk AI systems
- August 2027: Requirements for AI embedded in regulated products
How OnHirely Helps with EU AI Act Compliance
OnHirely's platform is designed for multi-regulation compliance. Our bias audits meet EU AI Act requirements for bias testing, documentation, and monitoring. We generate technical documentation and audit trails that satisfy EU supervisory authority expectations.