The 2025 landscape for artificial intelligence legislation and regulation is evolving rapidly, particularly at the state level, where various laws are being enacted to prevent algorithmic discrimination in employment decisions. Employers must stay informed about these changes to ensure compliance and mitigate risks associated with the use of AI systems.
The Texas Responsible AI Governance Act aims to regulate the use of high-risk artificial intelligence systems by employers, particularly in consequential decision-making areas such as hiring and termination. Covered employers will be obligated to ensure human oversight, report discrimination risks, and conduct regular assessments to prevent algorithmic discrimination.
The EU AI Act requires non-EU providers of high-risk AI systems and general-purpose AI models to appoint an authorised representative within the EU to ensure compliance with regulations. This representative must perform several duties, including verifying technical documentation and cooperating with competent authorities on regulatory matters.
Texas House Bill 1709 establishes a comprehensive framework for regulating high-risk artificial intelligence systems, emphasizing transparency, fairness, and accountability in their application, particularly in employment contexts. Employers must prepare for new obligations, including conducting impact assessments and ensuring their AI systems do not contribute to algorithmic discrimination.
The article discusses the interplay between the General Data Protection Regulation (GDPR) and the newly introduced AI Act in the European Union, highlighting how both frameworks aim to protect individuals’ rights while governing AI systems. It emphasizes the importance of understanding their complementary nature and the potential conflicts that may arise in compliance efforts.
The European Commission is dedicated to reducing administrative burdens through the Artificial Intelligence (AI) Act, which primarily imposes regulatory requirements on a limited number of high-risk AI systems. Member States are encouraged to support small and medium-sized enterprises (SMEs) by establishing regulatory sandboxes to facilitate the development and validation of AI systems.
On January 20th, 2025, President Trump revoked Executive Order 14110, which was a comprehensive governance framework on artificial intelligence in the USA. The revocation raises concerns as it lacks a replacement, potentially stepping backwards in the regulation of AI technologies that are increasingly integrated into society.
The EU AI Act, adopted in June 2024, represents a significant regulatory effort to oversee artificial intelligence across member states, influencing how public authorities utilize AI systems in various administrative contexts. By establishing procedural obligations and triggering the application of EU fundamental rights principles, the AI Act may lead to the Europeanisation of national administrative law and reshape the interplay between EU and domestic public law in digital regulation.
The upcoming Commission guidelines on the AI Act implementation must prioritize human rights and justice to ensure meaningful enforcement of the legislation. The guidelines should clarify that all AI systems, including those deemed ‘simple,’ are within scope and establish prohibitions against the misuse of technology that threatens fundamental rights, particularly for marginalized groups.