The EU AI Act is a landmark piece of legislation that will comprehensively regulate AI in the European Union. The Act has a risk-based approach and grades AI systems according to four levels of risk. Businesses have around two-and-a-half years to prepare for the Act before it is enforced in 2026. Entities covered by the Act must prepare, including providers of AI systems, deployers, and those located in third countries. To prepare for the Act, organisations need to create an inventory of their AI systems, develop governance procedures and guidelines, educate their employees, invest in expertise and talent acquisition, and invest in the necessary technologies and infrastructure. Holistic AI offers a comprehensive solution for preparing for the EU AI Act.

Governments worldwide are implementing laws to regulate the use of AI and other automated systems in the HR Tech sector. In the US, new laws are being proposed and implemented at the federal, state, and local levels to address bias and discrimination and increase transparency in employment decisions. Existing laws also apply to these technologies, adding additional requirements for HR Tech companies to comply with. The regulatory landscape is rapidly evolving, making it crucial for companies to stay up-to-date with the latest laws to avoid legal issues.

California has proposed legislation to limit workplace monitoring and address the use of automated-decision systems to make AI safer and fairer. The latest initiative, AB-331, seeks to regulate tools that contribute to algorithmic discrimination by prohibiting the use of automated decision tools that disfavor individuals based on their protected classification. Deployers must annually perform an impact assessment of ADT tools used to make consequential decisions and notify individuals affected by the decision of the use of ADT. Non-compliance may result in an administrative fine of up to $10,000 per violation or civil action. Exemptions apply to developers with fewer than 25 employees or if the ADT tool impacts fewer than 1,000 individuals per year.

The article discusses the varying definitions of Artificial Intelligence (AI) and its impact on society, including real-world examples of AI applications in industries such as healthcare and finance. It highlights the benefits and risks of AI, including ethical concerns about job displacement, privacy, and AI-proliferated misinformation. The article also explores the future of AI, including generative AI and the theoretical concept of artificial general intelligence that could one day solve the world's most complex problems. The article stresses the importance of understanding the applications and impact of AI and engaging in ethical discussions around bias and responsible deployment.

The European Parliament has voted to move forward with the EU AI Act, which seeks to lead the world in AI regulation and create an ‘ecosystem of trust’ that manages AI risk and prioritises human rights. The act will have implications for providers, deployers and distributors of AI systems used in the EU. The act takes a risk-based approach to regulating AI, where obligations are proportional to the risk posed by a system based on four risk categories. The act seeks to set the global standard for AI regulation, affecting entities around the world that operate in the EU or interact with the EU market. Businesses must use the preparatory period to build up their readiness and establish robust governance structures, build internal competencies, and implement requisite technologies. Holistic AI can assist organisations to achieve compliance with the EU AI Act through its comprehensive suite of solutions.