As AI technology becomes more integrated into daily life, the importance of AI literacy is becoming increasingly clear, especially as organizations like California and the EU mandate its inclusion in educational curricula. Educators are tasked with teaching individuals how to use AI responsibly, emphasizing critical thinking and understanding the technology’s limitations.
Enrollment in technical AI skills has surged by 1,100% following the implementation of the EU AI Act, which mandates AI literacy among workers. This increase reflects a growing demand for AI upskilling as organizations strive to ensure employees possess the necessary knowledge to navigate an AI-driven job market.
On February 2, 2025, the first five articles of the EU AI Act went into effect, marking the beginning of formal AI compliance requirements for companies operating in Europe. Organizations must now implement policies to ensure AI literacy among their staff to navigate the risks associated with AI systems.
On February 4, 2025, the European Commission issued draft guidelines clarifying the AI practices prohibited under the EU AI Act, aimed at helping businesses understand their obligations. These guidelines address unacceptable risks such as social scoring, manipulation, and emotion recognition in workplaces and educational institutions.
The EU AI Act officially became law on August 1st, 2024, with key measures for prohibited AI uses and AI literacy programs taking effect on February 2nd, 2025. Businesses must understand their obligations under the Act to avoid significant penalties for non-compliance, which can reach up to 7% of global annual revenue or 35 million EUR.
The first set of rules banning high-risk artificial intelligence systems under the European Union AI Act went into effect, prohibiting the deployment of AI-driven emotion recognition in workplaces and schools. Non-compliance could result in fines of up to 35 million euros or 7% of a company’s annual turnover.
The adoption of AI in HR offers significant potential for enhancing processes and decision-making, but it also requires careful navigation of the complexities posed by the EU AI Act. Companies must establish robust AI governance to ensure ethical and compliant use, especially when dealing with data from EU and UK citizens.
The EU AI Act, which began enforcement in February 2025, aims to establish a comprehensive legal framework for artificial intelligence that prioritizes ethical standards and the protection of fundamental rights. By classifying AI systems based on risk and prohibiting certain harmful practices, the Act sets a global benchmark for responsible AI development.
In this episode of the global insights video series “Illuminating the EU AI Act,” experts discuss essential considerations for drafting and negotiating AI contracts. They address critical issues such as data integrity, the “black box” problem, and the evolving landscape of AI regulation.
The EU AI Act establishes a regulatory framework for artificial intelligence within the European Union, aiming to balance innovation with safety while safeguarding fundamental rights. It imposes compliance requirements and outlines potential fines for non-compliance, affecting both EU-based organizations and those outside the EU that engage with the market.