Clifford Chance

Understanding the EU AI Act: implications for employers

19 June 2024

The recent approval of the EU Artificial Intelligence Act (EU AI Act) marks a significant shift in the legal landscape surrounding the use of artificial intelligence (AI) in the workplace. Breaches of the EU AI Act could result in fines up to the higher of EUR 35 million or 7% of global annual turnover.

The EU AI Act introduces a tiered classification system for AI systems and models based on their potential impact on human lives, fundamental rights and society. In particular, it specifically classifies certain AI systems in employment, such as AI tools intended to be used in recruitment, selection, and decision-making processes related to work-related relationships, as high-risk – and hence subject to strict obligations. In addition, certain AI systems are prohibited including AI tools to infer emotions in the workplace subject to limited exceptions.

Employers and HR professionals must be aware of the EU AI Act, its risk classifications and the corresponding obligations to ensure compliance.

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