{"id":86390,"date":"2025-08-06T14:44:17","date_gmt":"2025-08-06T14:44:17","guid":{"rendered":"https:\/\/degreed.com\/experience\/?p=86390"},"modified":"2025-08-06T17:05:36","modified_gmt":"2025-08-06T17:05:36","slug":"what-the-eu-ai-act-means-for-business-leaders","status":"publish","type":"post","link":"https:\/\/degreed.com\/experience\/blog\/what-the-eu-ai-act-means-for-business-leaders\/","title":{"rendered":"What the EU AI Act Means for HR Leaders in 2025"},"content":{"rendered":"\n<p>The EU AI Act is here\u2014and it\u2019s sending a clear message to enterprise leaders: <strong>AI isn\u2019t just an innovation opportunity. It\u2019s a responsibility and can become a potential liability<\/strong>.&nbsp;<\/p>\n\n\n\n<p>Any organization with a significant EU presence will be concerned, and any organization using AI to screen, train, or manage talent\u00a0may fall under the high-risk rules, meaning that compliance could be complex if you don\u2019t choose the right partner or provider. But despite the challenges, there\u2019s an opportunity\u2014 and that is <strong>to leverage regulatory pressure to increase workforce confidence and fluency in using Gen AI and develop a competitive advantage<\/strong>.<\/p>\n\n\n\n<p>It\u2019s an opportunity to enable your people to work <strong>with AI\u2014ethically, fluently, and effectively<\/strong>\u2014so your organization doesn\u2019t just comply with regulations, but leads in the AI era. It\u2019s a strategic inflection point for CHROs, CLOs, and CIOs to embed ethical, structured, and scalable AI learning into their organizations&#8217; DNA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why the EU AI Act Changes the Game<\/strong><\/h2>\n\n\n\n<p>The EU AI Act introduces sweeping rules on the development and use of AI, with some of the most stringent requirements impacting systems designed to automate workforce management.<\/p>\n\n\n\n<p><a href=\"https:\/\/artificialintelligenceact.eu\/article\/4\/\" target=\"_blank\" rel=\"noreferrer noopener\">Article 4 of the EU AI Act<\/a> is clear:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Providers and deployers of AI systems shall take measures to ensure, to the best extent possible, a sufficient level of AI literacy of their staff and other persons dealing with the operation and use of AI systems on their behalf.&#8221;<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>Organizations are responsible for ensuring that people who interact with AI systems are properly trained\u2014technically, ethically, and contextually. For HR and Learning Professionals, that means rethinking how AI is introduced, adopted, and governed across your workforce.<\/p>\n\n\n\n<p>If you\u2019re using AI to hire, upskill, manage, or evaluate employees, you\u2019ll also need to ensure that your AI provider has performed their due diligence and built their AI solution in a way in which your company can comply with the AI Act requirements.<\/p>\n\n\n\n<p><a href=\"https:\/\/get.degreed.com\/how-the-workforce-learns\" target=\"_blank\" rel=\"noreferrer noopener\">Our global research with Harvard Business Publishing<\/a> shows that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>68% of employees use Gen AI tools at least weekly<\/strong>, indicating widespread, decentralized adoption<\/li>\n\n\n\n<li>Yet <strong>78% of employees lack the confidence<\/strong> to use those tools effectively<\/li>\n\n\n\n<li>Only <strong>7%<\/strong> are fluent enough to build or customize Gen AI tools<\/li>\n\n\n\n<li>And <strong>74% of executives have received no formal training<\/strong> in Gen AI themselves<\/li>\n<\/ul>\n\n\n\n<p>Despite high usage, most organizations are flying blind\u2014with employees using AI tools without the training, oversight, or infrastructure required by law. This is a serious <strong>compliance risk<\/strong>, but more critically, it\u2019s a missed opportunity to <strong>turn AI adoption into measurable performance and innovation gains<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/get.degreed.com\/how-the-workforce-learns\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcG8sb0W9X1ypQ63-B3uCAPhhkLpuARPlRPTn2FCxW8p5XY4E5SajnCx0lUbn3bWL-Yi3VUaTFrXb3DmjTdapHBaAUwsknNkwgcN-V_xSLgV9ok8df2-asgJna5EDGSvjrTSoNcVg?key=4FNjrnBP8FBGt6iVRsj2CA\" alt=\"Sign up to get the 2025 &quot;How the Workforce Learns Gen AI&quot; report.\"\/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Understanding the EU AI Act<\/strong><\/h2>\n\n\n\n<p>The EU AI Act is designed to regulate AI applications based on their risk levels, categorising them into different tiers: unacceptable risk, high risk, limited risk, and minimal risk. This risk-based approach ensures that the higher the risk an AI system poses, the stricter the compliance requirements it must meet. Some AI applications might be strictly illegal under the EU AI Act, while others, classified as high risk, might need to be developed in specific ways, in line with the AI Act\u2019s requirements.&nbsp;<\/p>\n\n\n\n<p>Compliance with the EU AI Act is not just about adhering to regulations; it&#8217;s about ensuring that AI systems are trustworthy and beneficial for all users. For HR, Learning & Talent Management professionals, this means:<\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Safety and Trust<\/strong><\/summary>\n<p>Ensuring that AI-driven upskilling tools are safe and reliable, fostering an environment of trust between the technology and its users<\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Transparency<\/strong><\/summary>\n<p>Providing clear information on how AI systems make decisions is crucial for training applications that may influence learning outcomes and assessments<\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Legal Security<\/strong><\/summary>\n<p>Mitigating legal risks associated with non-compliance, which can include hefty fines and damage to reputation<\/p>\n<\/details>\n<\/details>\n<\/details>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The 3 Levers of a Gen AI-Fluent Workforce<\/strong><\/h2>\n\n\n\n<p>Our research shows that successful AI strategies converge around three critical enablers. These are the levers that bridge the gap between legal compliance and enterprise advantage:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Tools & Infrastructure<\/strong><\/h3>\n\n\n\n<p>You can\u2019t build Gen AI confidence without giving people hands-on access to AI tools\u2014and embedding them into real workflows. This includes secure, explainable systems that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Align with ethical standards and enterprise risk frameworks<\/li>\n\n\n\n<li>Provide visibility into how AI outputs are generated<\/li>\n\n\n\n<li>Integrate into performance, development, and decision-making systems<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Organizational Support & Training<\/strong><\/h3>\n\n\n\n<p>AI learning must be structured, strategic, and consistent. What high-performing organizations are doing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deploying AI academies, certifications, and on-the-job simulations<\/li>\n\n\n\n<li>Offering role-specific training for AI-enabled positions like Prompt Engineers and AI Analysts<\/li>\n\n\n\n<li>Making Gen AI literacy mandatory for managers and decision-makers<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. A Motivated Workforce<\/strong><\/h3>\n\n\n\n<p>Motivation accelerates learning. Our study shows employees who perceive a personal benefit\u2014such as productivity or creativity\u2014are <strong>77x more likely<\/strong> to engage deeply with Gen AI. This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clear communication of AI\u2019s value<\/li>\n\n\n\n<li>Use of AI for self-directed learning<\/li>\n\n\n\n<li>Leadership that models responsible experimentation<\/li>\n<\/ul>\n\n\n\n<p>When these three levers are deployed together, organizations unlock <strong>a confident, capable, and compliant workforce<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/get.degreed.com\/how-the-workforce-learns\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/08\/HWL-Launch-Assets_Social_V4-1-1024x576.png\" alt=\"\" class=\"wp-image-86396\"\/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>From Compliance to Confidence: Building Gen AI Fluency Across the Enterprise<\/strong><\/h2>\n\n\n\n<p>As Gen AI reshapes work, compliance is only the starting point. Today\u2019s CHROs, CLOs, and CIOs face a dual mandate: ensure governance and empower their people to use AI confidently and ethically. Meeting that challenge means moving beyond policy into practice.<\/p>\n\n\n\n<p>Here\u2019s how leading organizations are doing it:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Evaluate your current AI literacy levels across employees and leadership<\/strong><\/li>\n\n\n\n<li><strong>Embed Gen AI into learning workflows and daily routines.<\/strong><\/li>\n\n\n\n<li><strong>Provide hands-on practice through simulations and real-world application.<\/strong><\/li>\n\n\n\n<li><strong>Develop fluency at every level\u2014from frontline to executive leadership.<\/strong><\/li>\n\n\n\n<li><strong>Define new roles and responsibilities to scale AI capabilities.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>By building a Gen AI-fluent workforce, organizations reduce risk, accelerate innovation, and position themselves to lead\u2014ethically and effectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Degreed Supports You Getting There<\/strong><\/h2>\n\n\n\n<p>Compliance is at the core of our development process at Degreed. We build our platform to comply with the AI Act by leveraging:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>AI-powered platforms that prioritize human oversight, explainability, and data protection<\/li>\n\n\n\n<li>Structured Gen AI learning tools via academies, coaching, and personalized pathways<\/li>\n\n\n\n<li>Compliance-by-design architecture and logging to ensure transparency and auditability<\/li>\n<\/ul>\n\n\n\n<p>We help you transform regulatory pressure into a competitive advantage\u2014by building AI literacy where it matters most:<strong> in your people.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/degreed.com\/experience\/request-demo\/\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"201\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Sign-Up-banner-1280x250-1-1024x201-1-1.jpg\" alt=\"Want to learn more about Degreed? Get a demo.\" class=\"wp-image-83610\"\/><\/a><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Enable your team to work with AI ethically and effectively to comply with EU AI Act regulations and lead in the AI era.<\/p>\n","protected":false},"author":64,"featured_media":86401,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[572,571],"tags":[541,630,722,593],"post_folder":[],"class_list":["post-86390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-innovation-in-learning","category-corporate-training","tag-artificial-intelligence","tag-compliance-training","tag-how-the-workforce-learns","tag-workforce-transformation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - 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