In Italy, decisions concerning employment relationships, including dismissals, taken solely on the basis of automated processing by AI systems are now null and void, according to Il Sole 24 ORE. This ruling makes human oversight critical for any AI-driven employment outcome within the country, directly impacting multinational employers' 2026 planning for EU AI Act compliance.
The EU AI Act officially went into effect on August 1, 2024. However, key compliance deadlines for high-risk systems have been pushed back, creating immediate legal implications in some member states while offering a temporary reprieve in others.
Companies face a fragmented and evolving regulatory landscape for AI in HR. Proactive legal review and a shift towards human-in-the-loop AI systems are essential to avoid costly legal challenges and ensure compliance.
What 'High-Risk' AI Means for Your Hiring
AI used for recruiting, screening, selection, performance evaluation, or other employment-related decision-making is explicitly listed as high risk under the EU AI Act, according to Ogletree. This classification means most AI tools currently used in HR will fall under strict regulatory scrutiny. Further, AI tools for employment, worker management, and access to self-employment are also high-risk use cases, according to Digital Strategy. These broad classifications mean employers must overhaul operational practices and transparency measures. Emotion recognition in workplaces is a prohibited AI practice under the AI Act, underscoring the Act's intent to protect fundamental rights.
Key Dates and Prohibited Practices
By December 2, 2026, AI systems used to generate nonconsensual intimate imagery or child sexual abuse material will be banned, according to Ogletree. While such egregious AI uses have a clear future ban, the European Parliament has pushed back key compliance deadlines for high-risk systems. This creates a dynamic and uncertain regulatory environment, as the general compliance timeline for many high-risk HR systems remains in flux.
Italy's Immediate Stance: A Precedent for Enforcement
Italy has declared purely AI-based automated decisions in employment relationships, including dismissals, null and void, according to Ad-hoc-news De. As the first Member State to adopt a comprehensive framework transposing the European AI Act, as reported by Il Sole 24 ORE, Italy sets a critical precedent. This swift action reveals a potential for fragmented enforcement across the EU, with some member states moving faster and more stringently, bypassing perceived grace periods. Companies relying on AI for critical HR functions like hiring or dismissal operate under a false sense of security due to the EU's extended compliance deadlines; Italy's immediate nullification of such decisions confirms severe legal exposure is already present.
Preparing for the New AI HR Landscape
Employers should proactively audit all AI tools used in HR, prioritizing human oversight in decision-making. The EU AI Act's classification of HR tools as 'high-risk' combined with Italy's aggressive early adoption means multinational employers must immediately audit and potentially overhaul their AI-driven HR processes, rather than waiting for pan-EU deadlines. Developing robust transparency and explainability frameworks will mitigate legal risks. Companies will need to ensure that human intervention points are clearly defined and implemented throughout the AI-assisted HR workflow. By Q3 2026, multinational organizations like Siemens or Unilever will need to have fully integrated human review into all AI-assisted hiring and dismissal processes within Italy to avoid nullified decisions and potential fines.
Given the EU's fragmented regulatory approach and Italy's swift enforcement, other member states will likely follow with their own interpretations, making proactive, country-specific AI compliance essential for multinational employers.
