When will the EU AI Act come into effect?

The AI Act will become fully applicable in 2026 (except for a few provisions) with a phased enforcement timeline that began on August 1, 2024. Various provisions came into effect after their effective date. Provisions on prohibited AI practices came into effect in February 2025, with various other obligations and chapters coming into effect gradually in 2025, 2026, and 2027.

Which AI systems are considered high-risk?

High-risk AI systems include any AI systems that pose significant impacts on health, safety, or fundamental rights. These include AI used in critical infrastructure, medical devices, law enforcement, recruitment, education, and financial services. Any providers or deployers of such systems must adhere to the requirements related to risk management, data governance, transparency, and human oversight.

How will the EU AI Act be enforced?

The newly created European AI Office will oversee the enforcement of the AI Act. This office will work with the various supervisory authorities in the EU member states and coordinate efforts related to compliance, audits, investigation of violations, and future recommendations.

What penalties exist for non-compliance?

Non-compliance with the AI Act can result in fines of up to €35 million or 7% of a company's annual turnover, whichever is higher. The penalties are tiered based on the severity of the violation. Violations of prohibited AI practices carry the highest penalties, while non-compliance with other obligations (such as those for high-risk systems) can result in fines up to €15 million or 3% of global turnover. Providing incorrect information to authorities carries the lowest penalties, up to €7.5 million or 1% of global turnover.

What is employee data?

Employee data includes personal information related to employees, such as names, addresses, contact details, payroll information, performance evaluations, and any other data collected in the employment context. It can also include sensitive data like health records or biometric data if relevant to employment.

Does GDPR cover employee data?

Yes, GDPR covers employee data when employers process it. Employers are subject to GDPR requirements regarding the processing of personal data of their employees.

How does the General Data Protection Regulation (GDPR) address the processing of employee data?

Article 88 of GDPR allows EU member states to create specific rules for handling employee data in the workplace and grants flexibility for countries to establish laws protecting employee rights during the processing of their personal data for employment purposes. Other relevant GDPR articles include Article 6, which defines lawful bases for personal data processing; Article 9, addressing sensitive data processing; Article 30, mandating record-keeping for processing activities; and Article 35, requiring a Data Protection Impact Assessment (DPIA) in certain cases to mitigate risks to employee rights.

Does GDPR only apply to employees?

No, GDPR applies to all individuals whose personal data is processed by organizations, including employees, customers, clients, and any other data subjects.

What data is exempt from GDPR?

For example, this applies when the data isn’t personal or when the user isn’t a business or organization. GDPR also doesn’t apply to data used for crime investigations, law enforcement, or national security.

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August 10, 2021

What GDPR Means For Employee Data

What is the EU’s GDPR The European Union’s General Data Protection Regulation (GDPR) is designed to protect European Union’s residents in relation to the...

August 4, 2021

CPRA Employee Data Obligations

What is the CPRA? The California Privacy Rights Act (CPRA) was passed in the November 2020 ballot. 56% of California voters favored the law...

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Privacy notices need to be understood by your audience – especially if they are children – we recommend you have your notices in all...

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Everything You Need to Know About CPRA Data Sharing Requirements

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The Future of Employee Data Under California Consumer Privacy Act (CCPA)

When we think about privacy regulations, our first thought centers around the protection of consumer data. That most organizations should also keep in mind...

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Right to delete under California Consumer Privacy Act (CCPA)

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