EU lawmakers reach agreement on AI Act

On December 8, 2023, European lawmakers completed principal negotiations for the European Union’s (EU) Artificial Intelligence (AI) Act. The comprehensive legislation imposes restrictions on companies developing and implementing AI and imposes heightened regulatory requirements for AI technology based on the level of societal risk its use presents. Employers should be tracking this law for two reasons. The AI Act will cause American companies operating oversees to comply with its obligations, possibly leading to changes in their U.S. employment policies and procedures for pragmatic reasons, and it will inevitably influence AI legislation on this side of the pond.