Everything you need to know about AI Act HR
The rise of artificial intelligence (AI) has accelerated the world at an unprecedented pace. Since ChatGPT, AI has become a constant presence in the news. This revolutionary technology has the potential to transform the way we work, communicate, and solve problems. In line with these advancements, the European Union has introduced the AI Act. This page provides a definition of AI, highlights its applications within HR, and discusses the implications of the upcoming legislation.
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What is AI?
Artificial Intelligence (AI) refers to the development and application of computer systems that can perform tasks that typically require human intelligence. It is a broad field that encompasses various approaches, techniques, and algorithms designed to enable machines to simulate or replicate human cognitive abilities.
AI systems are intended to analyze and interpret data, learn from experiences, reason and make decisions, solve problems, and even communicate in natural language. These AI systems can process massive amounts of information using algorithms, identify patterns and trends, and provide insights or predictions based on the data they process.
HR-Analytics and AI
AnalitiQs has been helping companies work more data-driven for a long time through HR analytics, predictive algorithms, and insights. HR Analytics utilizes data and statistics to gain insights and support decision-making. When AI is integrated into this process, advanced algorithms and machine learning techniques can be applied to uncover complex patterns, trends, and predictions.
This enables the analysis of HR data on a large scale to provide actionable insights and support data-driven decision-making across various HR topics, including equal pay, internal mobility, diversity and inclusion (D&I), employee experience, performance management, absenteeism, and recruitment, retention, and turnover. This may still sound abstract, so below is a comprehensive overview of the possibilities of AI within different HR functions.
Examples of AI in HR
AI in recruitment and selection
When companies are looking for new hires, AI tools can search and analyze various online platforms, social media and professional networks to identify potential candidates who meet specific job requirements. On the other hand, when candidates have applied, AI algorithms can analyze resumes and identify the most qualified candidates to conduct automated interviews and even analyze candidate responses. On the other hand, a job description generator can also help create job profiles.
Automation of HR processen
This includes collecting documents, filling out forms and providing personalized welcome materials to new employees based on their position within the company. One of the more well-known AI capabilities is the Chatbot for customer but also employee support: these chatbots handle routine questions from employees on topics such as HR policy and leave requests.
AI and workforce planning, performance, succession planning & L&D
AI algorithms can analyze current and future skill requirements to identify talent gaps within an organization, helping HR teams plan for hiring or upskilling initiatives. In addition, AI can analyze employee performance, skills and career paths to identify promising employees for succession or offer new career paths (Unilever). On the employee side, AI can provide real-time feedback, coaching tips, and development suggestions to employees based on performance data and ratings. More operationally, planning tools based on AI such as Shiftboard can help with the day 2 day planning of staff at different locations.
Internal flow and turnover
AI algorithms can analyze employee historical data to identify factors contributing to advancement and attrition, so that HR teams can proactively take measures to retain valuable employees.
D&I & Employee experience
AI can analyze employee data to assess diversity and inclusion metrics and purpose, identify bias and create a more inclusive work environment. AI can analyze employee data to predict engagement levels and identify employees at risk of disengagement, enabling proactive intervention and targeted retention efforts.
There are countless benefits of using AI within the HR domain, but AI must be used correctly and responsibly. To further regulate the use of AI, Europe is working on an Artificial Intelligence Act (AI Act).
The AI Act – why is it relevant for HR?
The AI Act is a European regulation that focuses on developers, distributors and users of AI systems. These are systems that are used, for example, for predictions, classifications and analyses. The AI Act is expected to enter into force in 2026. The AI Act is based on a risk-based approach. This means that strict rules will apply to AI that is classified as high risk by the regulation. These rules include how AI is trained and tested, the documentation that must be prepared during AI development and the monitoring of the application after deployment. In addition, the AI Act contains specific requirements with regard to the design of quality and risk management.
One of the categories designated as high risk in the AI Act is AI that is used in the recruitment and selection process or when assessing employees. If you use AI in your HR processes, the impact of the AI Act can be significant and it is wise to prepare for this in good time.
What can you do to prepare for the arrival of the AI Act?
Organizations can already make an inventory of the extent to which they use AI that is classified as high risk by the AI Act. In addition to the HR applications mentioned, AI that is used for biometric identification or access to training, benefits or essential services, for example, is also regarded as high risk.
If you use this as an organization, you can use the draft text of the AI Act to determine which requirements have already been met, and which requirements still require action. A large part of the obligations such as the AI Act imposes on the use of high-risk AI systems are best practices in the field of risk management when using AI systems. Depending on the results of this analysis, an action plan can then be drawn up to set up the necessary additional measures.
Our service for reliable AI
AnalitiQs and Verdonck, Klooster & Associates (VKA) combine the technical, legal, ethical and organizational knowledge needed to get a grip on AI. We translate the applicable legal and ethical standards, including from the AI Act, into the most important requirements that you must meet in order to achieve reliable AI.
We can support you with:
- The responsible development of AI, such as predictive analyzes and algorithms
- Classifying the AI systems
- Setting up processes for performing risk analyses
- Advice on data ethics and the governance of AI and algorithms
- Advice on the use of AI applications, such as ChatGPT
- Support in setting up and securing technical and non-technical measures
- Developing policy regarding the procurement of AI systems
Do you use AI that may be considered high risk in the AI Act and would you like to discuss this with an expert advisor? Or do you have other questions regarding the use of data for HR? Then contact us without obligation.
