Navigating the EU AI Act: What It Means for Employers in Ireland

If it feels like Artificial Intelligence (AI) is popping up everywhere you turn recently, you wouldn’t be alone. However, AI has existed in one form or another since the mid-20th century. We might think of Computer Scientist, Alan Turing as the mind behind machine intelligence having invented the famous Turing Test in 1949, but even years before this, early AI research was ongoing. In popular culture there wasearly stirrings of what would become known as AI  explored throughout the 1927  science-fiction film, ‘Metropolis’.With the first provisions of the EU AI Act coming into force from February 2nd, 2025, it’s time to take a closer look at what this means for businesses across Ireland. 

See also: Deadline approaches for European AI Act. Companies need to prepare | SD Worx 

AI, standing for Artificial Intelligence, refers to the simulation of human intelligence and experience in machines, designed to mimic a human being’s own cognitive process. Often, we can think of AI as being something human-facing, that we might interact with in expectation of a response similar to what we would ourselves provide but this is not always the case. AI is designed to aid humans by refining decision making processes, analysing data at high speed, and generating responses to questions traditionally requiring human input and intelligence. 

 

You may think that you are not a user of AI, or only use it sparingly, but the fact is that AI has taken its place within our lives invisibly. Whether you enjoy browsing shops online and consider clicking on ads that seem to spawn and show you products that you just couldn't live without, or you enjoy using your smart thermostat to keep your house warm and energy efficient, you’re using AI.   

 

In April 2021, the European Commission proposed the first EU regulatory framework for AI. It says that AI systems that can be used in different applications are analysed and classified according to the risk they pose to users. The different risk levels will mean more or less regulation.  

Given the prevalence of AI across every element of our lives, it comes as no surprise that the EU has undertaken to regulate its use and ensure that AI is not deployed in harmful ways.  

The first provisions of the EU's AI Act will come into force shortly from 2 February 2025. This Act outlines that AI should be used in manners that are safe, transparent, traceable, non-discriminatory and environmentally friendly. AI systems should be overseen by people, rather than by automation, to prevent harmful outcomes. 

 

The EU AI Act focuses heavily on risk.  

The Act promotes minimising risk as much as possible when it comes to AI, and protecting the health and safety of people, as well as protecting their human rights and championing human-centric, trustworthy AI. A key objective is to ensure that the EU remains competitive for AI investment and innovation by adopting a risk-based approach and focusing on applications of AI systems to ensure that the conformance requirements for AI systems, and the obligation on providers and deployers of such systems, are targeted and proportionate. 

 

 

Unacceptable Risk 

Unacceptable risk is prohibited (e.g. social scoring systems and manipulative AI). 

Social scoring is a system by which AI can be used by governments to assign individuals a ‘social score’ based on their behaviour or compliance with social norms. Scores like this can be used to incentivise good behaviour or punish ‘bad’ behaviour by limiting opportunities, lengthening wait times for services, or withholding access to employment. 

As part of the EU AI Act, social scoring using AI and other similar systems are prohibited and have been classified as unacceptable risk. 

The majority of obligations fall on developers of high-risk AI systems. 

That is, those that create and intend to place on the market or put into service high-risk AI systems in the EU, regardless of whether they are based in the EU or a third country. 

And also, third-country providers where the high-risk AI system’s output is used in the EU. 

Users are natural or legal persons that deploy an AI system in a professional capacity, not affected end-users. 

Users (deployers) of high-risk AI systems have some obligations, though less than providers (developers). 

This applies to users located in the EU, and third country users where the AI system’s output is used in the EU. 

General purpose AI (GPAI)

All GPAI model providers must  

• provide technical documentation 
• Provide instructions for use 
• comply with the Copyright Directive 
• publish a summary about the content used for training. 

Free and open licence GPAI model providers only need to comply with copyright and publish the training data summary, unless they present a systemic risk. 

 

The EU AI Act aligns closely with Ireland's regulatory framework, reinforcing principles of privacy, data protection, and ethical AI governance.  

As an EU member state, Ireland adheres to the General Data Protection Regulation (GDPR), which emphasises safeguarding individual rights and ensuring transparency in data processing. The Data Protection Act 2018 further enforces these principles within Ireland, establishing the Data Protection Commission to oversee compliance Irish Statute Book. Complementing these regulations, Ireland's National AI Strategy advocates for a human-centric and ethical approach to AI development and deployment. This strategy underscores the importance of trustworthy AI, mirroring the EU AI Act's focus on ethical innovation and risk-based regulation. Collectively, these frameworks ensure that Ireland fosters an environment conducive to AI adoption, prioritising human rights and societal welfare while maintaining compliance with stringent European standards. 

 

At SD Worx Ireland, we work hard to keep ourselves at the cutting edge of technology and work hard to use new software safely and efficiently within our business. We have long been considering the role of AI in Payroll and HR Software and are keen to remind our clients of important dates, like the Feb 2nd cut-off which is fast approaching.  
 
We use reputable automation to make our internal processes even more efficient and always ensure that our experts are deeply involved with each new improvement to keep everything running smoothly for you and your company!