Groundbreaking AI Act approved by the EU

The impact of this regulation will be felt by both public institutions and private companies operating in the EU market as they may need to adjust certain aspects of AI use in their business in order to remain compliant.

A key principle of the legislation is risk assessment. For example, before high-risk AI systems are implemented, organizations must evaluate how they might affect individuals’ rights and freedoms—such as privacy, bias, or discrimination— and review and/or adjust their practices to be compliant with the regulation aiming to protect the user and their important data.

Risk-Based Approach

The AI Act introduces a tiered framework based on risk levels:

• Minimal or low-risk AI systems (like spam filters or recommendation engines) will be subject to minimal transparency requirements.
• High-risk systems (such as those used in recruitment, education, or law enforcement) will face stricter obligations, including data governance standards, human oversight, and mandatory registration in a centralized EU database.
• Unacceptable risk AI applications (such as systems that manipulate behavior or use biometric profiling for policing) will be banned altogether.

For recruitment agencies, like Undutchables, and HR departments in companies, whether small or large, this means that AI tools used for hiring and candidate screening must meet new standards of transparency and fairness, particularly when they influence decision-making processes. In addition, the human touch must not be replaced by AI, but rather employees must be trained in how to work with AI in a compliant and supportive way while also maintaining oversight in order to ensure continued security and fairness in practice.

Enforcement and Oversight

The EU has established several new bodies to handle the implementation and effective enforcement of the AI Act. These include:

• The European Artificial Intelligence Board (AI Board), which will be made of representatives from Member States and will be focused on creating cohesion across the EU, as well as support for local implementation.
• The EU AI Office is responsible for monitoring compliance and coordinating with national authorities and providing support to the AI Board.
• Advisory bodies to help inform decision making. These include a Scientific Panel comprised of independent experts who help evaluate complex AI systems, and an Advisory Forum to provide important insights from stakeholders and technical experts.

Timeline and Implementation

The regulation was published last summer and was officially put into effect on August 1st, 2024. However, full enforcement takes time, so the council has created an implementation plan spanning two years. In February of this year the first stage of the implementation was already applied, and the next milestone is expected to come into effect this May. This gradual implementation plan will allow companies the time they need to make any necessary changes in order to be compliant with the new regulations.

What This Means for International Talent and Employers

For international professionals and companies operating in or hiring within the EU, the AI Act signals a positive shift toward more ethical AI usage in the workplace. Tools that influence employment decisions—such as AI-powered CV screeners or video interview analyzers— and the individuals using them, will need to meet higher standards of accountability. At Undutchables, we are committed to supporting both clients and candidates as these changes roll out, ensuring recruitment processes remain fair, transparent, and human-centered.

Want to learn more about what the AI Act means for you? Check out the handy resources below or reach out to our team for more information about how this new regulation will impact hiring practices in the coming years and for advice on future-proofing your recruitment strategy.