The EU AI Act, which aims to promote the development and usage of safe AI systems, is being rolled out in a series of stages.
After being introduced in August 2024, the first two chapters of the Act came into effect on 2 February 2025. By August 2025, EU member states were required to designate competent authorities and legislate penalties for those who breach the Act.
Delays to next phase of the EU AI Act
The next deadline for the EU AI Act was set for 2 August 2026, when rules surrounding high-risk AI systems would come into effect.
On 7 May 2026, however, it was announced that the upcoming deadline would be extended by up to 16 months, allowing for adjustments to the Act and extra time to confirm that all necessary tools are available.
What does this mean for employers?
While there are several categories of AI systems that fall into the ‘high-risk’ bracket, one of the most relevant categories for EU employers is the use of AI for HR purposes.
Regulations surrounding Annex III systems, which include employment-related systems used for recruitment, selection, performance monitoring, promotion, and termination, will now come into effect on 2 December 2027.
What should employers do next?
Any employer who uses AI systems in their HR processes, particularly recruitment or staffing decisions, should make note of the new deadline and ensure that they use this extra time to prepare.
Employers should:
- Conduct an audit of all HR processes and determine where AI is being utilised
- Assess the risks associated with their AI systems
- Consult official EU guidance to ensure compliance
- Put a preparation plan in place ahead of the new deadlines
- Keep an eye out for any further updates or changes to the EU AI Act