Advice for Employers and Recruiters
3 ways employers and TA tech vendors are likely to trigger massive fines under the new EU AI Act
We published an article a few weeks ago about the impact of the European Union Artificial Intelligence Act on job boards, applicant tracking systems, and other talent acquisition technology that ranks, scores, and matches candidates against job openings.
To help better understand the new requirements, we reached out to Ruth Jennifer Tan, the founder and product manager of Wolf King USA. With a strong background in computing, Ruth excels at providing comprehensive and reliable information. She is dedicated to helping tech enthusiasts, professionals, and beginners navigate the complex world of computing, empowering others with her passion and expertise.
According to Ruth, “The AI Act classifies recruitment AI as high-risk because it directly impacts people’s access to jobs. That means these systems must meet strict compliance requirements by the deadline. Companies must register their systems in an EU database and pass a conformity assessment. If they don’t, the system becomes illegal to use in the EU market. So yes, these systems can become illegal very soon.”
She added that three specific circumstances trigger illegality:
- Failing to provide transparency. Candidates must be told they are being scored by AI and given an explanation of the logic.
- Skipping human oversight. The Act requires a human to review any automated rejections.
- Weak data governance. Systems must use high-quality, representative training data to avoid bias.
Ruth added, “The Act sets fines of up to 7% of global annual turnover for violations. The Act also bans certain AI uses outright. Biometric categorization using sensitive traits like race or gender is prohibited in hiring. Emotion recognition in the workplace is banned completely. Discrimination outcomes trigger enforcement from national authorities.”
