Understanding AI Literacy Under the New EU AI Act

First Provisions of EU AI Act Now Apply

The first provisions of the EU AI Act began to take effect on February 2, marking a significant milestone in the governance of artificial intelligence in Europe. Companies that either provide or deploy AI systems are now mandated to ensure a level of AI literacy within their operations, while certain AI practices have been prohibited.

Understanding AI Literacy

According to the Act, AI literacy encompasses the skills, knowledge, and understanding necessary for various stakeholders involved in AI systems. This includes providers (those putting AI systems into the market), deployers (those using these systems), and affected persons. The goal is to empower these groups to make informed decisions regarding the deployment of AI technology and to be aware of both its opportunities and risks.

Article 4 of the Act mandates companies to ensure, to the best of their ability, that their staff and others involved in the operation and use of AI systems possess a sufficient level of AI literacy. Factors such as technical knowledge, experience, education, and the context of AI system usage must be considered.

Implementing AI Literacy in Organizations

Organizations are left to interpret what the requirements of AI literacy mean in practical terms. The Autoriteit Persoonsgegevens (AP), the Dutch Data Protection Authority, has issued guidance to help organizations navigate these requirements. The guidance emphasizes that there is no universal solution for achieving adequate AI literacy; instead, organizations should tailor their strategies based on the specifics of their workforce and the degree of risk associated with the AI systems in use.

To facilitate AI literacy, organizations are encouraged to develop a multi-year plan that follows a four-step process:

  • Step 1 – Identify: This step involves creating an inventory of all AI systems used within the organization and documenting the roles of personnel alongside their AI knowledge and skills.
  • Step 2 – Determine Goals: Organizations should establish AI literacy goals based on risk levels. Not every employee requires the same depth of knowledge, but those involved with specific AI systems should be adequately informed about their risks and functionalities.
  • Step 3 – Execute: After setting goals, organizations must implement appropriate strategies and actions. AI literacy should be prioritized at all organizational levels, with responsibilities potentially defined in roles such as an AI officer.
  • Step 4 – Evaluate: Regular analysis of whether AI literacy objectives are being met is crucial. This could involve annual surveys to assess the effectiveness of the measures implemented.

Continuous Process of AI Literacy

The guidance clarifies that AI literacy is not a final objective but a continuous process. Organizations must routinely evaluate and update their literacy measures, especially given the rapid advancements in technology that introduce new opportunities and risks.

It remains to be seen how regulatory bodies in other EU member states will provide guidance on compliance with these literacy obligations, and organizations should stay informed in their respective jurisdictions.

Future Implications of the AI Act

While the initial provisions of the AI Act are now in effect, the majority of its regulations will not be enforced until August 2026, with some provisions commencing later. However, regulations concerning general-purpose AI systems will begin on August 2, 2025, subject to certain exceptions. Furthermore, various codes of conduct and templates will be finalized soon.

For a comprehensive overview of the EU AI Act, including its implementation timelines and practical compliance steps for companies, it is crucial to stay updated as this legislation continues to evolve.

More Insights

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Embracing Responsible AI to Mitigate Legal Risks

Businesses must prioritize responsible AI as a frontline defense against legal, financial, and reputational risks, particularly in understanding data lineage. Ignoring these responsibilities could...

AI Governance: Addressing the Shadow IT Challenge

AI tools are rapidly transforming workplace operations, but much of their adoption is happening without proper oversight, leading to the rise of shadow AI as a security concern. Organizations need to...

EU Delays AI Act Implementation to 2027 Amid Industry Pressure

The EU plans to delay the enforcement of high-risk duties in the AI Act until late 2027, allowing companies more time to comply with the regulations. However, this move has drawn criticism from rights...

White House Challenges GAIN AI Act Amid Nvidia Export Controversy

The White House is pushing back against the bipartisan GAIN AI Act, which aims to prioritize U.S. companies in acquiring advanced AI chips. This resistance reflects a strategic decision to maintain...

Experts Warn of EU AI Act’s Impact on Medtech Innovation

Experts at the 2025 European Digital Technology and Software conference expressed concerns that the EU AI Act could hinder the launch of new medtech products in the European market. They emphasized...

Ethical AI: Transforming Compliance into Innovation

Enterprises are racing to innovate with artificial intelligence, often without the proper compliance measures in place. By embedding privacy and ethics into the development lifecycle, organizations...

AI Hiring Compliance Risks Uncovered

Artificial intelligence is reshaping recruitment, with the percentage of HR leaders using generative AI increasing from 19% to 61% between 2023 and 2025. However, this efficiency comes with legal...