Challenges of artificial intelligence in labour relations under the new European AI Act
Artificial intelligence (AI) is changing human resource management in companies, covering processes such as recruitment and performance analysis. With the entry into force of Regulation 2024/1689, which regulates AI, the European Union establishes a clear regulatory framework for the use of AI in the workplace. In doing so, it aims to ensure that the implementation of AI systems is safe, ethical and aligned with labour rights and data protection. In this article, we look at the challenges presented by the application of artificial intelligence in labour relations.
AI applications in Human Resources and compliance with the European AI Act in the Workplace
AI is essential in recruitment and automation in human resources, improving efficiency. However, the European Regulation classifies certain AI systems used in HR as ‘high risk’. This means that those systems that influence decisions such as hiring, promotion or dismissal must meet strict transparency and security requirements. In addition, the regulation requires human oversight of these systems to avoid decisions that violate fundamental rights, explicitly prohibiting discrimination based on gender, race, age, or other protected factors.
Safety measures in the application of AI in the workplace imposed by the European AI Act
The Regulation establishes a risk classification to identify which AI applications can be used in the workplace and under which conditions. For high-risk AI systems, the Regulation imposes specific obligations such as:
- Human supervision: AI systems that affect the employment relationship must be supervised. Human intervention is necessary to minimise errors or biases of the algorithm.
- Transparency and traceability: Companies are required to document and record the use of AI in human resources, providing employees and candidates with clear information about the technology.
- Assessment of bias and discrimination: The Regulation requires eliminating bias in algorithms, avoiding discrimination in recruitment and prohibiting the use of historical data that perpetuates injustices.
Data protection and workers’ rights under the European AI Act in the field of employment
The Regulation strengthens the protection of personal data in the use of AI at work. As AI systems can handle large amounts of sensitive information, such as biometric and private data, the regulation requires companies to ensure the strict necessity and protection of this data. In addition, it is mandatory to implement cybersecurity measures to protect privacy and comply with European data protection legislation.
Sanctions and deadlines for adaptation on the basis of the European AI Act in the field of employment
The Regulation provides for penalties of up to 7% of annual global turnover or €35 million for non-compliant companies. For high-risk AI systems in the workplace, compliance will be mandatory from August 2026, providing an adaptation period for companies to bring their systems into compliance.
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