Resources/Glossary/Law and compliance

What is the EU AI Act?

The EU AI Act is the European Union's law on artificial intelligence. It treats AI systems used to recruit, screen, filter or evaluate candidates, and to make decisions about workers, as high risk, which places duties on both the vendors that build them and the employers that use them.

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In one line

The European Union's AI law. It treats AI used to recruit, screen or evaluate candidates as high risk, with duties for both vendors and employers.

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The Act sorts AI by risk. Some practices are banned outright, including emotion recognition in the workplace except for medical or safety reasons; those bans have applied since February 2025. High risk systems, which include many recruiting and HR uses listed in Annex III, must meet rules on risk management, data quality, documentation, transparency, human oversight and accuracy.

Providers carry most of the build duties. Employers, called deployers, must use systems according to the instructions, assign trained people to oversee them, keep logs, monitor results and inform workers and candidates where required. The Act also expects staff using AI to have adequate AI literacy.

Dates have moved. The EU's digital omnibus on AI, in force from July 2026, pushed the Annex III high risk obligations from August 2026 to December 2027. Rules can change again, so check current guidance; this is not legal advice.

Why it matters to recruiters

Any company hiring in the EU, or using AI on EU candidates, may fall under the Act even if it is based elsewhere. Recruiters and TA leaders will be asked which AI tools they use, how decisions are overseen and what candidates are told. Starting an inventory now avoids a scramble before the deadlines.

An example from a recruiting desk

A US software firm with a growing team in Ireland lists every AI tool in its hiring process: an AI screening feature in the ATS, an interview note taker and a sourcing assistant. It asks each vendor how they classify the tool under the Act and what documentation they provide, names a reviewer for each high risk use, and updates its candidate privacy notice.

Tips that help

  • Keep a list of every AI tool used in hiring and what decisions it touches.
  • Ask vendors how their tools are classified under the Act and request documentation.
  • Name trained people to oversee AI screening and keep a record of their reviews.
  • Avoid any tool that claims to read candidates' emotions in interviews.

Mistakes to avoid

  • Assuming the Act only applies to companies based in the EU.
  • Leaving compliance entirely to vendors when deployers have their own duties.

Frequently asked questions

Does the EU AI Act apply to US companies?

It can. The Act covers providers placing AI on the EU market and deployers using AI in the EU, and it can reach output used in the EU. Hiring EU based candidates with AI tools may bring you into scope.

When do the high risk rules for hiring AI apply?

Under the digital omnibus on AI, the Annex III high risk obligations, which include employment uses, were moved to December 2027. Bans on prohibited practices have applied since February 2025.

Is AI resume screening banned under the EU AI Act?

No. It is generally classed as high risk, not banned, so it is allowed with safeguards such as human oversight, documentation and transparency. Emotion recognition in the workplace is banned, with narrow exceptions.

Sources

Written by recruiters at Work Insiders. Part of the recruiting and HR tech glossary. Updated October 2026.