The EU’s Artificial Intelligence Act (EU AI Act)1 will have a significant impact on employers and HR professionals who use, or plan to use, AI systems in their operations, recruitment, performance evaluation, talent management and workforce monitoring. The EU AI Act will not only affect organisations in the EU (and possibly EEA) Member States, it also has extra-territorial reach. In this briefing, we look at key considerations regarding the EU AI Act for employers and the practical steps businesses should take now.

This article examines the EU’s key legislative instruments – the NIS 2 Directive, Cyber Resilience Act (CRA) and Digital Operational Resilience Act (DORA) – which together harmonize cybersecurity standards across critical sectors such as infrastructure, digital products and financial services.

As jurisdictions race to understand and build appropriate regulatory and governance structures around artificial intelligence, the EU is frequently regarded as the frontrunner. However, the US is forging its own federated approach and isn’t necessarily behind. For organizations, is alignment with one or the other the best path to success? Ultimately, the choice won’t be either-or.