"As the world's first legislation specifically targeting AI comes into law on Thursday, developers of the technology, those integrating it into their software products, and those deploying it are trying to figure out what it means and how they need to respond."
The world's first AI legislation is the EU's AI act. "Thursday" was August 1st, so the law has already gone into effect by the time you read this.
"Over the last year, tech industry vendors have launched a flurry of products promising to embed AI in their HR applications. Oracle, Workday, SAP, and ServiceNow are among the pack. SAP, for example, promises 'intelligent HR self-service capabilities,' while ServiceNow has introduced technology in which LLMs can produce summaries of HR case reports."
"You need to document what you did in terms of [AI model] training. You need to document to some extent how the processing works and ... for instance in an HR surrounding, on what basis the decision is taken by the AI to recommend candidate A instead of candidate B. That transparency obligation is new."
"The EU has good intentions, but customers of ours are getting two messages: You've got to have AI to be competitive, but if you do the wrong thing in AI, you could be fined, which effectively would mean the entirely senior management team would be fired, and the business may even go under."
EU AI Act in infancy, but using 'intelligent' HR apps a risk