AI Act: are you ready to face regulatory changes and adapt your processes?

The aim is to regulate the use of AI in all areas of life, with an emphasis on the protection of individuals’ rights, transparency of processes and accountability for data processing.

For employers and staffing agencies that use AI on a daily basis in recruiting, assessing candidates or targeting job offers, the AI Act means they need to adapt their processes and technology to comply with new legislative requirements.

”I see this as a watershed moment that will affect not only the entire recruitment process, but also the relationship between the employer and the potential employee.” Anna Brozák – HR Director

Will the AI Act affect the functioning of the HR department at MAXIN’S?

I do. The European Union is planning to introduce a new regulation on artificial intelligence (AI Act), which will come into force in 2025. This regulation aims to establish clear rules and obligations for the use of AI, focusing in particular on the protection of individuals’ rights and transparency.

This will bring significant changes for recruitment agencies that work on a daily basis with recruiting individuals, posting targeted job offers and assessing candidates .

What challenges and opportunities does this bring?

I will only present the most important ones, which I would divide into five points:

1. Transparency of algorithms

One of the key principles of the regulation is to ensure the transparency of AI algorithms. If a company is using AI to evaluate CVs, predict the suitability of applicants or target job offers, it will need to:

• Provide information on how these algorithms work.
• Demonstrate that the system does not contain discriminatory elements (e.g. on the basis of age, gender or ethnic origin).
• Inform candidates if their assessment has been carried out by AI.

From my own experience in recruitment, I know that candidates expect the HR or recruitment department to take the time to individually assess their CV or cover letter. Candidates believe in the empathy of the recruiter and are suspicious of AI. Would you like to be rejected based on an initial AI screening without having any knowledge of it?

2. Responsibility for data

The AI Act emphasizes data protection and compliance with the GDPR. Being a staffing agency, I’ll be a little subjective and state what this means for us:

• Evaluate what data you collect, how you process it and whether it is used only for the purpose for which consent was obtained.
• Introduce regular audits of AI systems to ensure compliance with legislation.
• Provide candidates with the opportunity to challenge automated decisions.

3. Reassessment of targeted offers

Targeted posting of job offers based on applicant data can come under scrutiny, especially when using technologies that track online behaviour or use sensitive personal data. What does this mean for companies for whom recruitment is a core business?

• Ensure that bids are published in a fair and inclusive manner.
• Prevent algorithms from unknowingly discriminating against certain groups of candidates.

4. Tools for assessing applicants

Do you use AI to assess candidates’ skills or personality traits? From 2025, these tools will be classified as “high risk systems” and subject to strict regulation. And thus, prospective employers will have to:

• Ensure that the systems used are certified to the new standards.
• Ensure that the results are objective, fair and that the candidate has the opportunity to challenge them.

5. Mandatory staff training from 2025

Compliance with the new regulation will also require in-depth training of staff within that company. All staff will need to understand:

• Candidates’ rights in the context of AI.
• How to properly use AI tools in compliance with legislation.
• What procedures to follow to avoid fines.

What are the recommendations to make sure that employers and companies are perfectly prepared for the change?

First and foremost, we recommend being prepared and looking for training, conferences, or other forms of education that are already underway as the new year 2025 is almost upon us.

Second, it is essential to evaluate the AI tools currently in use and determine whether they meet future regulatory requirements. Procedurally, we recommend setting up an internal compliance team to monitor the implementation of the AI Act, as AI will be reflected in contracts and will impact all your departments from HR, marketing, sales to finance.

Thirdly, you need to communicate with technology partners, IT infrastructure managers, GDPR provider to provide you with documentation and assurances about the transparency of their solutions.

Finally, a word of advice at the very beginning of implementing AI Act in your company: get rid of the preconception that it is a matter for the legal department and that you will get everything from them on a silver platter.

Autor

Anna Brozák