If employees are not trained in AI, it becomes very expensive.

Written by Lars-Thorsten Sudmann | Dec 15, 2024 10:40:33 PM

The EU AI Act has far-reaching implications for companies and the training needs of their employees in the field of artificial intelligence (AI). Here are the most important ones.

There are hardly any loopholes, because according to the AI Act (Article 3, paragraph 4), all companies that use an AI system on their own responsibility, such as ChatGPT or DeepL, must comply with the law. In EU terminology, these are the "deployers" (Article 3, 3). The requirements in terms of training therefore do not only apply to providers of AI technology, as some have reported.

Implications for companies

The AI Act requires companies that use, develop or distribute AI systems to take several measures:

Ensure AI competence: Companies must ensure that their employees have sufficient AI competence in accordance with Article 4 of the AI Act[1][3].
Transparency and explainability: AI systems must be transparent and explainable[1].
Risk management: Companies must implement effective risk management for their AI systems[2].
Documentation and information: There is an obligation to provide comprehensive documentation and proactive information about AI systems[2].

Training requirements for employees

The AI Act attaches great importance to the training and skills development of employees:

Mandatory training: Companies must provide training for employees who work with AI systems by February 2, 2025[3][6].
Scope of training: Training should cover technical, ethical and legal aspects of AI[5].
Continuous professional development: Regular refresher courses are required to keep up with the latest developments[7].
Adaptation to roles: Training must be tailored to the technical knowledge, experience and specific roles of employees[

Consequences of non-compliance

If companies do not train their employees appropriately and still allow AI systems to be used, there are serious consequences:

High fines: Violations can be punished with fines of up to 35 million euros or 7% of annual global turnover, whichever is higher[8][10].
Legal risks: Companies expose themselves to potential liability risks if untrained employees use AI systems incorrectly[1].
Competitive disadvantages: A lack of AI expertise can lead to inefficiencies and competitive disadvantages[9].
Reputational damage: Violations of the AI Act can damage the company's public reputation.
Operational risks: Inadequately trained employees can use AI systems incorrectly, which can lead to errors and potential damage[5].

It is important to emphasize that compliance with the AI Act is not only a legal obligation, but also an opportunity for companies to strengthen their AI skills and use this technology responsibly[9]. Companies should therefore proactively develop and implement training programs to both comply with legal requirements and ensure their competitiveness in an increasingly AI-driven economy.

Sources
[1] The new AI Act and its impact on companies

https://een-bb.en/news/the-new-ai-act-and-its-impact-on-businesses/

[2] AI Act: What the EU AI Act means for businesses
https://klardenker.kpmg.de/was-der-eu-ai-act-fuer-unternehmen-bedeutet/

[3] Obligation to train employees by February 2025 due to EU AI ...

https://www.rewion.com/schulung-eu-ai-act/

[4] AI Act - Acquisition of AI competence is mandatory from February 2, 2025!
https://www.datenschutz-notizen.de/ai-act-erwerb-von-ki-kompetenz-ist-pflicht-ab-2-februar-2025-1649478/

[5] AI literacy as a basic working skill - Magnusson

https://www.magnussonlaw.com/ai-law/ai-literacy-as-a-basic-working-skill/

[6] AI Act: New legal requirements for AI skills
https://we-make.ai/blog/ai-act-obligated-companies-to-ki-training/

[7] AI Act: Rules for companies when using artificial intelligence

https://www.ihk-muenchen.de/de/Service/Digitalisierung/K%C3%BCnstliche-Intelligenz/AI-Act/

[8] Penalties in the EU AI Act - Steinbeis Ifem - The Augsburg Business School
https://steinbeis-ifem.de/strafen-im-eu-ai-act/

[9] Article 4 of the EU AI Act - What transport and logistics companies ...

https://translogmarketing.de/artikel-4-des-eu-ai-act-transport-logistik/

[10] AI training mandatory from February: Is your company prepared?
https://disruptive-muenchen.de/ai-act/ia-act-schulungspflicht/

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