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Legal responsibilities
Beyond simply adopting new technology, employers are responsible for making sure that their workforce has the knowledge and confidence to use AI safely, fairly, and in compliance with the law.
Compliance with the EU AI Act
The EU AI Act – the world’s first comprehensive legal framework on AI – entered into force in 2024. One of the key requirements is that businesses using AI systems make sure that their staff have adequate AI literacy, which includes training employees and contractors in how AI works, what risks it poses, and how to use it responsibly. Failure to comply can result in significant fines and reputational damage. This includes any business that trades within the EU.
Understanding the law and workplace impacts
Beyond the EU AI Act, organisations must also consider existing laws that AI interacts with:
Data protection and privacy laws (e.g. GDPR) — making sure that AI tools do not misuse or mishandle personal data.
Employment law — making sure AI-driven decisions about recruitment, performance, or workplace monitoring are transparent, fair, and free from discrimination.
Ethical and reputational responsibilities
Legal compliance is only one part of the picture. Employees must also be aware of the ethical dimensions of AI use, including bias, misinformation, and overreliance on automated systems. Training empowers staff to question outputs, apply critical thinking, and avoid reputational risks that could harm both individuals and your business.
Employer duty of care
Employers have a duty to provide safe systems of work. As AI tools become “work equipment” in a modern sense, organisations must provide clear guidance, training, and policies that safeguard staff from misuse or misunderstanding of AI. By investing in formal training, employers can demonstrate due diligence and proactive risk management.