EU passes Artificial Intelligence Act

As we finish the first quarter of 2024, Congress and the Biden administration continue to focus on regulating artificial intelligence (AI). Despite that attention, however, no comprehensive legislation or regulations applying to AI have been implemented at the federal level. In contrast, the European Parliament passed the Artificial Intelligence Act on March 13. The legislation was three years in the making and will have wide-ranging consequences for employers using AI within the European Union and globally. Employers should also be paying attention to this new Act because regulators in the U.S. are likely to see it as a model for future legislation at the state and federal level.

Highlights of the new legislation

The AI Act is expected to officially become law in the European Union before the summer after clearing some additional administrative hurdles, with the Act’s compliance obligations going into effect in phases over a 36-month period. U.S. employers with a presence abroad that use artificial intelligence for hiring or workforce management in the EU will be covered.