On 21 April 2021 the European Commission published the proposed regulation referred to as the Artificial Intelligence Act. This proposal is the response to the presence of systems utilizing artificial intelligence in more and more areas of life, also in HR. These regulations are supposed to ensure the credibility of the technology used and guarantee safety and protection of citizens’ and businesses’ basic rights while also simultaneously strengthening investments and innovation across all of the EU member states. 

Systems utilizing artificial intelligence (AI) have been categorized by their level of risk. 

Depending on the risk level which a system may generate, it will be subject to separate requirements before it can be marketed.

The European Commission has classified artificial intelligence systems used in HR, managing employees, recruitment, monitoring and employee appraisal processes as high risk systems. For these systems may exert a significant influence not only on the mere fact of employment but above all on the future employment outlook for workers.

The European Commission highlighted in particular the danger involved in using AI systems in recruitment processes and in employee appraisal processes. According to the European Commission, there is a concern that these systems may entrench historical patterns of discrimination (e.g. against women, some age groups, disabled persons or persons with a certain racial or ethnic background). Artificial intelligence systems used to monitor employee productivity may in turn exert a significant influence on the right to protect the data of these persons and their right to privacy. 

The classification of the AI systems used in HR as high risk systems means that these systems will not only be subject to a rigorous evaluation before they can be marketed but that they will be monitored for the entire period of their operation on the market. The suppliers and users of these systems will report major incidents and their incorrect operation.  

According to the European Commission, the regulations that are supposed to apply to the suppliers and users of high risk artificial intelligence systems will mitigate the risk of erroneous or prejudicial decisions that may be made by artificial intelligence systems in critical areas such as in HR. 

Find more in the PRO HR May 2021.