{"id":6028,"date":"2024-08-01T09:00:00","date_gmt":"2024-08-01T09:00:00","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&#038;p=6028"},"modified":"2025-04-23T10:37:25","modified_gmt":"2025-04-23T10:37:25","slug":"eu-artificial-intelligence-act","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-strategy\/hr-technology\/eu-artificial-intelligence-act\/","title":{"rendered":"The\u00a0EU Artificial Intelligence Act: What\u00a0US\u00a0employers need to know"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull\" style=\"padding-top:var(--wp--preset--spacing--40);padding-bottom:var(--wp--preset--spacing--40);min-height:250px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-0 has-background-dim\"><\/span><img decoding=\"sync\" class=\"wp-block-cover__image-background wp-image-5877\" alt=\"Brightmine background\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/04\/19110611\/Hero_Header_HP_Background_Desktop.webp\" style=\"object-position:100% 51%\" data-object-fit=\"cover\" data-object-position=\"100% 51%\" \/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-d4010286 wp-block-columns-is-layout-flex\" style=\"padding-top:var(--wp--preset--spacing--40);padding-right:0;padding-bottom:var(--wp--preset--spacing--40);padding-left:0\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-group has-cararra-gray-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-f90d3be4 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h1 class=\"wp-block-heading has-primary-purple-color has-text-color has-link-color wp-elements-b7898752ced1e4f39048779400b5c845\">The&nbsp;EU Artificial Intelligence Act: What&nbsp;US&nbsp;employers need to know<\/h1>\n\n\n\n<p class=\"has-primary-gray-color has-text-color has-link-color has-medium-font-size wp-elements-d749a854b2af9d4b52964f65d459969b\">The EU Artificial Intelligence&nbsp;Act&nbsp;is the world&#8217;s first comprehensive,&nbsp;horizontal&nbsp;legal framework for AI. Its impact&nbsp;will be felt globally. Learn how it could impact your organization.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image aligncenter size-full has-custom-border\"><img decoding=\"sync\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/04\/11141301\/resource_page_banner_brightmine.webp\" alt=\"Brightmine resources graphic\" class=\"wp-image-4642\" style=\"border-radius:0px\" \/><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-7854952d wp-block-group-is-layout-constrained\" style=\"margin-top:0;margin-bottom:0;padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<p>Published: August 1, 2024 | by <strong>Robert S. Teachout<\/strong>, Legal Editor at Brightmine<\/p>\n\n\n\n<p>In March 2024, the&nbsp;European Union&nbsp;(EU) adopted the&nbsp;Artificial Intelligence&nbsp;(AI)&nbsp;Act. The&nbsp;Act, among other things, will regulate how AI can be used in employment by companies operating in the&nbsp;EU.<\/p>\n\n\n\n<p>It is not the first legislation addressing the use of AI in the employment landscape and does not specifically affect companies that operate exclusively in the&nbsp;US. However,&nbsp;US&nbsp;employers that sell or operate AI services in the European market should recognize that not complying with the&nbsp;Act&#8217;s requirements can result in heavy penalties.<\/p>\n\n\n\n<p>Beyond this, even&nbsp;US&nbsp;employers across other industries should understand the&nbsp;Act&#8217;s implications since it may set a precedent for similar legislation in the&nbsp;US. Some states already are going down that path. Colorado passed a law that will require employers that use AI in certain employment decisions to take reasonable care to protect&nbsp;employees&nbsp;and job applicants from &#8220;algorithmic discrimination.&#8221; And Illinois and Maryland regulate how AI can be used in applicant video interviews.<\/p>\n\n\n\n<p>But the&nbsp;EU&#8217;s AI&nbsp;Act&nbsp;is the world&#8217;s first comprehensive,&nbsp;<em>horizontal<\/em>&nbsp;legal framework for AI \u2014 that is, one that applies to all applications of AI across all sectors and standards. The impact of the&nbsp;Act&nbsp;will be felt globally.<\/p>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-d5209ea4 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-cararra-gray-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-79d58207 wp-block-group-is-layout-flex\" style=\"border-bottom-left-radius:25px;border-bottom-right-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<h2 class=\"wp-block-heading\" style=\"font-size:clamp(15.747px, 0.984rem + ((1vw - 3.2px) * 1.131), 24px);\">In this resource:<\/h2>\n\n\n\n<ul style=\"padding-right:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\" class=\"wp-block-list\">\n<li style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.548), 18px);line-height:1.7\"><a href=\"#Key-Provisions\">Key provisions<\/a><\/li>\n\n\n\n<li style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.548), 18px);line-height:1.7\"><a href=\"#Impact-on-US-Organizations\">Impact on&nbsp;US&nbsp;organizations<\/a><\/li>\n\n\n\n<li style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.548), 18px);line-height:1.7\"><a href=\"#Take-Initiative-Prepare-Now\">Take initiative, prepare now<\/a><\/li>\n\n\n\n<li style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.548), 18px);line-height:1.7\"><a href=\"#What-the-Future-Holds-for-AI-Regulations\">What the future holds for AI regulations<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Key-Provisions\">Key Provisions<\/h2>\n\n\n\n<p>The&nbsp;EU&#8217;s AI&nbsp;Act&nbsp;assigns AI systems to one of four tiers based on a system&#8217;s level of risk:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li>Unacceptable.<\/li>\n\n\n\n<li>High.<\/li>\n\n\n\n<li>Limited.<\/li>\n\n\n\n<li>Minimal.<\/li>\n<\/ul>\n\n\n\n<p>Assignment to a tier is generally correlated to the sensitivity of the data involved and the application and use case of the AI system. Although the&nbsp;Act&nbsp;does not address the use of personal data by AI, it does state that current&nbsp;EU&nbsp;law (i.e., General Data Protection Regulations (GDPR)) applies to the collection, use and protection of personal data, privacy and confidentiality in AI-based applications and technology. In general, the more highly sensitive data an AI system handles, the higher risk the system will be rated.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"634\" height=\"612\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/09\/18164750\/eu-artificial-intelligence-act-key-provisions.webp\" alt=\"Infographic showing the four tiers of AI based on risk level, which include minimal, limited, high and unacceptable.\" class=\"wp-image-6430\" srcset=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/09\/18164750\/eu-artificial-intelligence-act-key-provisions.webp 634w, https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/09\/18164750\/eu-artificial-intelligence-act-key-provisions-300x290.webp 300w\" sizes=\"auto, (max-width: 634px) 100vw, 634px\" \/><\/figure>\n\n\n\n<p><br><br>All AI practices that pose unacceptable risk to the safety, livelihoods and rights of people are strictly prohibited. Such practices include:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li>Using manipulative, deceptive and\/or subliminal techniques to influence a person.<\/li>\n\n\n\n<li>Exploiting a person&#8217;s vulnerabilities due to their age, disability or social\/economic situation.<\/li>\n\n\n\n<li>Using biometric data to categorize individuals based on protected characteristics.<\/li>\n<\/ul>\n\n\n\n<p>High-risk AI systems include those used in critical infrastructure; employment and management of&nbsp;workers; educational and vocational training; and law enforcement and the administration of justice. All remote biometric identification systems are considered high risk.<\/p>\n\n\n\n<p>The concern with limited-risk AI is generally related to the potential lack of transparency in its usage. The&nbsp;Act&nbsp;imposes specific requirements to ensure that necessary information is provided prior to use, such as informing a person when they are interacting with a chatbot or identifying when AI-generated content is provided. Minimal-risk AI (such as such as AI-enabled video games or spam filters commonly used today) may be freely used.<\/p>\n\n\n\n<div class=\"wp-block-group alignfull has-secondary-light-gray-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-fcdab8bb wp-block-group-is-layout-constrained\" style=\"margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h2 class=\"wp-block-heading has-text-align-center has-large-font-size\">Want to make smarter, more-informed decisions?<\/h2>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-font-size\" style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.274), 16px);font-style:normal;font-weight:500\"><a class=\"wp-block-button__link has-secondary-blue-color has-primary-white-background-color has-text-color has-background has-link-color wp-element-button\" href=\"\/us\/products\/hr-compliance-center\/\" style=\"border-radius:100px\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Impact-on-US-Organizations\">Impact on&nbsp;US&nbsp;Organizations<\/h2>\n\n\n\n<p>Just as the GDPR set the bar for data protection and privacy when they were implemented in 2018, the&nbsp;EU&nbsp;AI&nbsp;Act&nbsp;may become the global standard for determining how AI can be used in a positive and ethical way. And, like the GDPR, the&nbsp;Act&nbsp;will have a significant impact on organizations in the&nbsp;US&nbsp;and around the world.<\/p>\n\n\n\n<p>The AI&nbsp;Act&#8217;s regulatory framework will apply to any providers and developers of AI systems (including free-to-use systems) marketed or used within the&nbsp;EU. It does not matter whether those providers or developers are based or operating in the&nbsp;EU&nbsp;or in another country, they must comply with strict requirements to mitigate risks and provide information and monitoring. Penalties for not complying can range from \u20ac7.5 million or 1.5 percent of global revenue up to \u20ac35 million or 7 percent of revenue.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"634\" height=\"754\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/09\/18165251\/timeline-of-eu-artificial-intelligence-act-provisions.webp\" alt=\"Infographic of the EU Artificial Intelligence Act enforcement timeline, starting with the initial effective date of August 1, 2024.\" class=\"wp-image-6432\" srcset=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/09\/18165251\/timeline-of-eu-artificial-intelligence-act-provisions.webp 634w, https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/09\/18165251\/timeline-of-eu-artificial-intelligence-act-provisions-252x300.webp 252w\" sizes=\"auto, (max-width: 634px) 100vw, 634px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Take-Initiative-Prepare-Now\">Take Initiative, Prepare Now<\/h2>\n\n\n\n<p>The best approach for&nbsp;US&nbsp;employers to take regarding AI regulation is to be proactive and to embrace a responsible AI mindset. Policies and practices should be considered through an ethical lens; instead of focusing on what your organization&#8217;s AI&nbsp;<em>can<\/em>&nbsp;do, consider how it&nbsp;<em>should<\/em>&nbsp;be used.<\/p>\n\n\n\n<p>The first assessment an organization needs to make is whether it is subject to the&nbsp;EU&nbsp;regulations. The&nbsp;Act&nbsp;applies to providers, deployers, distributors, importers, product manufacturers and authorized representatives. The distinction between the different roles is important because each role will be subject to different requirements. The most stringent requirements apply to providers, but many employers also could be considered &#8220;deployers&#8221; due to using an AI-enabled HR management system and therefore subject to regulation.<\/p>\n\n\n\n<p>Adopting and communicating a formal AI policy is an important step for organizations to take. The policy should implement robust safeguards that address the key risks set forth in the&nbsp;Act&nbsp;and be regularly reviewed and updated as necessary. The policy should clearly explain the employer&#8217;s commitment to ethical and positive AI use; establish boundaries of permissible use; encourage transparency, including prohibiting retaliation for asking questions or reporting violations; and ensure that data is secure and private.<\/p>\n\n\n\n<p>Organizations also need to:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li>Set up guardrails for AI development, such as having a risk mitigation team and conducting robust reviews and use case testing.<\/li>\n\n\n\n<li>Provide training for how to use the AI system and its ethical application.<\/li>\n\n\n\n<li>Communicate about the employer&#8217;s use of AI to all stakeholders, including&nbsp;employees, customers and the public. Commit to transparency and accountability from the beginning.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"What-the-Future-Holds-for-AI-Regulations\">What the Future Holds for AI Regulations<\/h2>\n\n\n\n<p>As the use of AI technology continues to increase exponentially, legislators will continue to address the use of such technology in response to concerns about potential harm from the use of AI, and calls for greater oversight of AI systems by the AI ethics movement.<\/p>\n\n\n\n<p>As new laws and regulations are introduced and adopted, organizations that stay informed about pending and new laws and regulations and adopt best practices for ethical AI use will maintain a competitive advantage in their market.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-alabaster-gray-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group alignfull has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-bbb7e64f wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h2 class=\"wp-block-heading has-text-align-center has-large-font-size\">Start your free trial today<\/h2>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\">Register today to gain free 7-day access to the Brightmine HR &amp; Compliance Center and stay up to date, compliant and save valuable time.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-primary-white-color has-secondary-blue-background-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/hrcenter.us.brightmine.com\/freetrial-login\/?loggedInUrl=%2Ffreetrial%2Fnew-user%2F&amp;registrationUrl=%2Ffreetrial%2Fnew-user%2F&amp;intcmp=hrcc-resources|cta-2-col|light|banner|hrcenterus-freetrial|take-a-free-trial\" style=\"border-radius:26px\" target=\"_blank\" rel=\"noreferrer noopener\">Take a free trial<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-fcdab8bb wp-block-group-is-layout-constrained\" style=\"border-radius:25px;margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h3 class=\"wp-block-heading has-large-font-size\">About the author<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100px\">\n<figure class=\"wp-block-image size-thumbnail is-resized is-style-rounded\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/07\/09090849\/Robert-Teachout-150x150.webp\" alt=\"Robert Teachout, SHRM-SCP - Legal Editor at Brightmine\" class=\"wp-image-4983\" style=\"object-fit:cover;width:100px;height:100px\" srcset=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/07\/09090849\/Robert-Teachout-150x150.webp 150w, https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/07\/09090849\/Robert-Teachout.webp 200w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"\"><strong>Robert S. Teachout, SHRM &#8211; SCP<\/strong><br>Legal Editor, Brightmine<\/p>\n\n\n\n<p class=\"\">Robert Teachout has more than 30 years&#8217; experience in legal publishing covering employment laws on the state and federal level. At Brightmine, he covers labor relations, performance appraisals and promotions, succession and workforce planning, HR professional development and employment contracts. He often writes on the intersection of compliance with HR strategy and practice.<\/p>\n\n\n\n<p class=\"\">Before joining Brightmine, Robert was a senior HR editor at Thompson Information Services, covering FMLA, ADA, EEO issues and federal and state leave laws. Prior to that he was the primary editor of Bloomberg BNA&#8217;s State Labor Laws binders and was the principal writer and editor of the State Wage Assignment and Garnishment Handbook. Robert also served as a union unit leader and shop steward in the Washington-Baltimore Newspaper Guild of the Communications Workers of America. Actively involved in the HR profession, Robert is a member of SHRM at both the national and local levels, and gives back to the profession by serving as the communications vice president on the board of his local chapter.<\/p>\n\n\n\n<p class=\"\">Connect with Robert on <a href=\"https:\/\/www.linkedin.com\/in\/robertteachout\/\">LinkedIn<\/a> and <a href=\"https:\/\/twitter.com\/HRCrossRdsComm\" target=\"_blank\" rel=\"noreferrer noopener\">X<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The EU Artificial Intelligence\u00a0Act\u00a0is the world&#8217;s first comprehensive, horizontal legal framework for AI. Its impact\u00a0will be felt globally. Learn how it could impact your organization.<\/p>\n","protected":false},"author":24,"featured_media":8438,"comment_status":"closed","ping_status":"closed","template":"resources","categories":[56],"tags":[],"topic":[25,29],"class_list":["post-6028","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-c-and-i","topic-hr-compliance","topic-hr-technology"],"_lnrs_read_more":"","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The EU AI Act: What\u00a0US\u00a0employers need to know | Brightmine<\/title>\n<meta name=\"description\" content=\"The EU Artificial Intelligence\u00a0Act\u00a0is the world&#039;s first comprehensive,\u00a0horizontal\u00a0legal framework for AI. 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