Global Artificial Intelligence Legislation Impacting Human Resources

HR and Global Artificial Intelligence LegislationAcross the globe, we’re seeing varying degrees of global artificial intelligence legislation and how it’s impacting the human resources function. The EU’s Artificial Intelligence Act (AI Act), designed to support the development of trustworthy AI, was passed in May 2024 and has a rolling implementation over 24 months. The Act also includes the AI Innovation Package and the Coordinated Plan on AI. This law will have significant implications for multinational employers including companies without a physical presence in the EU. It will likely influence AI regulations worldwide, similar to how GDPR impacted global data privacy.

Several other AI-focused legislative laws are underway, or guidelines have been put in place in China, Canada, Australia, the UK, Japan, and South Korea. Efforts at the federal level in the US are being pursued as well. However, the state of Colorado passed the Colorado AI Act (CAIA) in May 2024 (effective February 1, 2026), which requires developers and deployers of high-risk AI systems to protect users from algorithmic discrimination. The CAIA explicitly covers AI systems companies use to make hiring, promotion, and other personnel decisions.

This site lets you track AI legislation globally.

What Employers Need to Know about the EU Act

The AI Act applies to any AI system whose output is intended for use in the EU. This means global employers may need to comply if they recruit candidates from the EU, offer products or services that use AI for EU customers, or have employees, contractors, or contingent workers inside the EU. Other impacts for employers.

High-Risk AI Systems

Employment-related systems used for making decisions are considered ‘high-risk’ according to the Act. This includes systems related to hiring, promotions, terminations, and performance reviews. More on the Act’s risk levels.

An employer using high-risk systems must perform risk management audits and develop procedures that ensure high-quality AI training data is used, documentation and logs are kept, human oversight is maintained, and strong security measures are in place. More on risk management.

Transparency Requirements

Employees and workers’ representatives must be informed before implementing AI systems. In addition, employees must be made aware that they are interacting with AI and receive clear information about the system’s abilities and limits. More on transparency.

Preparation for Employer

Full implementation is not yet underway, but some suggested steps, for now, include auditing how current AI is used in recruitment and human resources, creating a framework for AI governance, AI training for employees, and working with legal experts to be compliant with the Act once it is implemented. More on employer obligations.

Fines can run upwards of EUR 15,000,000 or up to 3 % of a company’s worldwide annual revenue for the previous financial year.