EU GDPR and AI Act Establish Framework for Ethical AI Development

The European Union's General Data Protection Regulation (GDPR) and the newly introduced AI Act of 2024 create a unified framework aimed at protecting personal data and ensuring ethical AI development in workplaces.

The GDPR mandates that personal data be processed lawfully, fairly, and transparently, especially when employers utilize AI for recruitment and performance evaluations. The AI Act complements this by imposing additional transparency obligations for high-risk AI systems, ensuring candidates are informed about AI's role in processing their data.

Both regulations grant individuals the right to request human intervention in fully automated decisions, with the AI Act requiring ongoing human oversight to ensure fairness throughout the decision-making process.

Furthermore, the GDPR restricts data collection to specific, legitimate purposes, which is critical in preventing excessive data gathering in recruitment. The AI Act reinforces this by necessitating clear definitions of AI system purposes, ensuring only relevant data is processed.

Both regulations emphasize the importance of accurate and up-to-date data to prevent biased or outdated decisions, particularly in promotions and performance assessments. The AI Act mandates the use of high-quality, unbiased data for high-risk systems.

Accountability is a cornerstone of both regulations, with the GDPR requiring organizations to demonstrate compliance, while the AI Act introduces additional responsibilities for high-risk AI systems, including fundamental risk assessments.

Together, the GDPR and AI Act form a robust framework that aims to ensure responsible AI deployment in the workplace, aligning data protection principles with AI-specific requirements to safeguard employee rights and corporate accountability.

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