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.
