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  1. Topics & Tools
  2. Employment Law & Compliance
  3. EU AI Act Finalized
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In Focus

EU AI Act Finalized

July 25, 2024 | Allen Smith, J.D.

Someone working on a laptop with a graphic of AI superimposed on the person's typing hands.

The EU AI Act will become law on Aug. 2, and its provisions will start to apply on a phased-in basis.

We’ve gathered articles on the news from SHRM Online and other outlets.

EU at the Forefront of AI Regulation

On March 13, the European Parliament approved the EU AI Act, putting the European Union at the forefront of governing the burgeoning technology.

The EU AI Act divides artificial intelligence into categories of risk ranging from unacceptable to high, medium, and low hazard. AI systems considered high-risk—such as those used in biometrics, employment, management of workers, and access to self-employment—will have to comply with strict requirements. Low-risk services, such as spam filters, will face the lightest regulation.

“SHRM will work with EU and global stakeholders to provide clarity to employers in the EU who seek to use AI safely and consistent with our shared values, and to understand their obligations under the Act,” said Emily M. Dickens, SHRM chief of staff, head of public affairs, and corporate secretary, in a statement. “Here in the United States, SHRM will continue its ongoing engagement with Congress, the Administration, and state and local legislatures, serving as a trusted partner to policymakers, looking to achieve consensus on AI legislation and regulation that maximizes human potential.”

(SHRM Online, European Commission, and WilmerHale)

Effective Dates

Most of the provisions apply as of Aug. 2, 2026. The ban on AI systems that pose an unacceptable risk takes effect Feb. 2, 2025. The obligations for high-risk systems take effect Aug. 2, 2027.

(Littler)

More Stringent Rules Allowed

EU member states may maintain or introduce regulations that further protect workers’ rights with respect to the use of AI systems by employers or that encourage or allow the application of worker-friendly collective agreements.

(White & Case)

Act Lacks Clarity, Some Say

Legislators held talks in December 2023 to get the EU AI Act over the line, but critics now say the legislation is undercooked. Regulators left out essential details urgently needed to give clarity to businesses seeking to comply with the law, they say. Some estimate that the EU needs between 60 and 70 pieces of secondary legislation to support the law’s implementation.

(Financial Times)

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