- 25.02.25
- Reading time: 5 Minuten
AI in human resourcesWhat does the EU AI Regulation stipulate?
Author: Dr Markus Hülper, lawyer, IT security expert
Artificial intelligence has long since arrived in human resources: Whether automated applicant pre-selection, AI-supported employee assessments or chatbots in recruiting – companies are increasingly relying on smart technologies. However, with the new EU AI Regulation (AI Act), these applications are suddenly under particular scrutiny.
AI in HR practice: between efficiency and risk
Imagine your company uses an AI to screen job applications. Sounds efficient, doesn’t it? The algorithm automatically sorts out unsuitable profiles and highlights suitable candidates. But what if it later turns out that the AI systematically discriminates against women or older applicants? Discrimination through AI is a real risk – and the new EU regulation is particularly focussed on such cases.
The same applies to AI-supported employee assessments. Suppose a software analyses the communication behaviour of employees and awards points for ‘efficiency’ or ‘commitment’. What happens if the criteria are unfair or not transparent? Black box AI is a no-go when it comes to personnel decisions.
Risk classification of AI systems in human resources management
The EU AI Regulation follows a risk-based approach and categorises AI systems into different risk categories:
Inadmissible risk
AI systems that are considered unauthorised are prohibited. These include systems that manipulate or exploit people by taking advantage of their weaknesses. AI-supported social scoring systems that could evaluate and discriminate against people based on their behaviour or other factors are also prohibited.
High risk
AI systems that are used in sensitive areas such as human resources are considered high-risk. Examples include systems for evaluating applicants, automated decision-making for promotions or dismissals and software for monitoring employees. These applications are subject to particularly strict transparency and control requirements.
Low to minimal risk
AI systems that only perform supporting functions, e.g. automatic appointment proposals or chatbots for applicant enquiries, fall into the low or minimal risk category. Hardly any regulatory restrictions apply to them.
The EU AI Regulation:Why HR AI is high-risk
The EU AI Regulation classifies AI systems in the HR department as ‘high-risk applications’, as they have a direct impact on fundamental human rights such as access to the labour market, fair working conditions and the protection of privacy. In particular, there is a risk of discrimination, lack of transparency and inappropriate control in the areas of applicant selection, performance evaluation and employee monitoring. This means that companies that use such technologies must fulfil strict requirements.
These include, among others:
Transparency
It must be clear what criteria the AI uses to make decisions
Non-discrimination
The AI must not discriminate against any groups.
Human control
Important decisions must not be made by an AI alone.
Documentation & risk management
Companies must scrutinise and document the use of AI.
The penalties for violations are not without consequences: depending on the severity of the case, fines of up to 35 million euros or 7% of annual global turnover can be imposed. This even exceeds the scope of possible GDPR sanctions.
What companies should do now
The introduction of the EU’s AI regulation is fundamentally changing the way HR departments work. AI is increasingly being used in areas such as recruitment, performance evaluation and employee development to optimise processes and improve decision-making. While this technology offers numerous benefits, it also harbours challenges, particularly in terms of fairness, transparency and data protection. Companies are now faced with the task of implementing the new regulatory requirements, reviewing their existing systems and preparing their employees for the responsible use of AI.
If you use AI in HR or are planning to do so, you should take action now at the latest. In concrete terms, this means
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Check your existing AI systems:
Do they fulfil the new requirements? If not – make adjustments! In future, HR departments will be obliged to regularly check the AI tools they use for compliance with the EU’s AI Regulation. High-risk systems may have to be certified before they can be used in practice. This could mean additional bureaucracy for companies, but ensures that AI systems work fairly and reliably. -
Focus on transparency and fairness:
A ‘black box’ is not a solution. In future, companies must disclose when AI is involved in decision-making processes and ensure that certain groups are not systematically disadvantaged. A transparent and fair approach to AI can have a positive impact on employer branding. Companies that use sustainable, ethical and compliant AI solutions can position themselves as attractive employers. -
Train your HR team:
AI expertise will be essential in the future. HR employees need to familiarise themselves more with the functions, possibilities and risks of AI technologies. Companies should offer targeted further education and training to ensure that HR managers make the right decisions when dealing with AI and recognise potential problems at an early stage. -
Seek legal advice:
The requirements of the EU AI Regulation are complex – an individual risk analysis helps to avoid fines. Trade unions and works councils should also be given a stronger role in the co-design of AI-supported HR processes. Companies should work together with employee representatives at an early stage to ensure that the systems used are legally compliant and do not put employees at a disadvantage. -
Adaptation of recruitment processes:
Many companies are already using AI in application procedures, e.g. to analyse CVs or pre-select suitable candidates. The EU’s AI Regulation requires such systems to be made more transparent and comprehensible. This not only contributes to compliance with the regulations, but also improves the confidence of potential applicants in the recruitment process.
The EU AI RegulationBoth an opportunity and a challenge for HR
The EU’s AI Regulation places new requirements on the use of AI in HR. While the regulatory burden is increasing, the regulation also offers an opportunity: companies that proactively implement the EU’s AI regulation can position themselves as pioneers in the ethical and transparent use of AI. HR departments should familiarise themselves with the new requirements at an early stage in order to avoid compliance risks and strengthen the trust of applicants and employees in AI-supported HR processes.
Ultimately, the future of HR will be characterised by a successful combination of human expertise and technological support – with the right balance between automation and human supervision. Companies that successfully achieve this balance will not only realise efficiency gains, but will also be able to reliably meet compliance requirements.
However, the requirements of the EU AI Regulation are complex – an individual risk analysis with a customised implementation strategy for your company will help you avoid fines.
Benefit from the expertise of our compliance experts!
So that you don’t have to fight your way through endless regulations, we offer:
- E-learning courses on AI expertise:
Learn what is important for AI in HR. - Legal advice:
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Make sure your HR AI is watertight. - Development of corporate guidelines for the use of AI
Let’s create clear framework conditions together
Let’s work together to ensure that your AI remains efficient, fair and legally compliant. We will be happy to advise you!
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