On June 14, 2024, the European Parliament approved Regulation (EU) 2024/1689 on Artificial Intelligence, commonly known as the EU AI Act. This regulation establishes a regulatory framework that significantly impacts various sectors, including human resources. Specifically, it affects recruitment, assessment, and selection activities. The law will come into effect on January 1, 2025, with full enforcement starting from July 1, 2025.
The regulation classifies AI applications into different risk categories. In the field of human resources, AI systems used for candidate selection and assessment are considered high-risk due to their potential impact on fundamental rights, such as access to employment and equal opportunities.
A key aspect of the regulation is transparency. Companies must inform candidates when AI systems are used during the selection process. This includes providing details on how these tools are used, what data is collected, and how it is processed. Transparency in recruitment is essential for building trust and ensuring that candidates understand how decisions affecting them are made.
Organizations must conduct an impact assessment to identify and mitigate risks related to discrimination and bias. It is crucial to regularly review the algorithms used in selection processes to ensure their fairness and to correct any detected biases. Proper risk management is key to complying with the AI regulation.
The regulation mandates meaningful human oversight in all automated decisions affecting candidates. This means that recruitment processes should not be fully automated and that human intervention must occur when necessary. Human oversight ensures that AI-driven decisions are fair and balanced.
Candidates have the right to request explanations of automated decisions that affect them. Companies must provide mechanisms for candidates to appeal decisions they consider unfair. Additionally, a clear and understandable explanation of how a particular decision was reached must be provided.
The use of AI in recruitment must comply with the General Data Protection Regulation (GDPR). It is crucial to ensure the protection of personal data and that it is used solely for the specific purposes of the selection process. Data protection is a fundamental pillar in complying with the AI regulation.
Organizations will be subject to regular audits to verify compliance with Regulation 2024/1689. This includes maintaining detailed records on the use of AI and the criteria used in decision-making. Non-compliance with the regulation can result in significant penalties, affecting the company’s reputation and finances.
It is essential for companies to stay updated on legislative developments and best practices in the use of artificial intelligence. Continuous training of staff in the ethical and legal use of AI tools is vital to ensure regulatory compliance and effectiveness in selection processes.
Regulation 2024/1689 of the EU represents a significant shift in how companies must manage artificial intelligence in recruitment and selection processes. For Servitalent and our clients, it is crucial to ensure that these technologies are used transparently, ethically, and in compliance with the regulations. With the regulation coming into effect on January 1, 2025, and full enforcement starting from July 1, 2025, it is essential for organizations to begin preparing now for the new challenges and opportunities this regulation brings.
This approach will not only help avoid penalties but also enhance candidate trust and the quality of selection processes.
At Servitalent, with our specialized services, we help you adapt your recruitment and selection processes to the new regulatory framework. Our team of talent and technology experts can advise you to ensure your company complies with the AI Act 2024, mitigating risks and improving the quality of your selection processes.