EU AI Act guide · updated 3 August 2026
AI in hiring: the EU AI Act rules for recruitment and HR
Hiring is where the EU AI Act lands on ordinary companies. You may neverbuild a model, but if your applicant tracking system ranks candidates, your assessment platform scores them, or your HR analytics evaluates performance, you are deploying Annex III high-risk AI — with obligations applying from 2 December 2027 under the 2026 Omnibus, in the €15M / 3% penalty tier (workplace emotion inference is banned already). Annex III point 4 is the single most widely triggered category in the Act, and the one companies most often discover through their vendor rather than their compliance register.
Which HR systems are in scope
Targeted job advertising and candidate sourcing
Annex III 4(a) — placing targeted job advertisements
CV parsing, filtering and knockout screening
Annex III 4(a) — analysing and filtering job applications
Candidate scoring, ranking and shortlist generation
Annex III 4(a) — evaluating candidates
Automated assessments and interview scoring
Annex III 4(a) — evaluating candidates
Promotion, termination and contract-terms decisions
Annex III 4(b) — decisions affecting work-related relationships
Task allocation based on behaviour or personal traits
Annex III 4(b) — allocation of tasks
Performance and behaviour monitoring analytics
Annex III 4(b) — monitoring and evaluating performance
The derogation that usually does not apply
Article 6(3) lets a provider classify an Annex III system out of high-risk when it performs only a narrow procedural task, improves the result of a previously completed human activity, detects decision patterns without replacing human assessment, or performs a preparatory task. Vendors reach for it often. It carries a hard limit: a system is always high-risk where it performs profiling of natural persons. Scoring, ranking or predicting the performance of candidates is profiling, so the derogation is closed for the core of recruitment AI. Where a provider does claim it, they must document the assessment before market placement and still register the system under Article 49(2) — ask to see that document.
Provider or deployer — and how employers become both
Buy an ATS and use it as sold: you are the deployer, the vendor is the provider. Three common moves flip you into the provider seat with the full Articles 9–15 stack, per Article 25: putting your own name or brand on the system, substantially modifying it, or repurposing it into a high-risk use the provider did not intend. Fine-tuning a model on your own hiring history is the version of this that HR teams walk into without noticing — a screening model trained on your data is, for practical purposes, a system you provide to yourself.
The employer duty stack
Use it as documented
Art. 26(1)
Operate within the vendor's stated intended purpose. Repurposing a screening tool into a promotion tool is the fastest way to inherit provider obligations under Article 25.
Name the humans
Art. 26(2)
Specific recruiters or HR business partners, trained, with real authority to overrule a ranking and to stop using the tool. Record who they are and what training they had.
Control what goes in
Art. 26(4)
Your historical hiring data and job descriptions are the input you control — they must be relevant and sufficiently representative for the intended purpose. Historical bias is an input-data problem you own, not only the vendor's.
Monitor, escalate, suspend
Art. 26(5)
Watch outcomes for adverse-impact patterns. On signs of risk: inform the provider, suspend use, and notify the market surveillance authority.
Keep the logs
Art. 26(6)
Retain the system's automatically generated logs under your control for at least six months — this is what lets you reconstruct a contested rejection.
Tell the workforce first
Art. 26(7)
Inform workers' representatives and affected workers before workplace use begins. In several Member States, works-council consent is required on top.
Tell the candidates
Art. 26(11) + 86
People subject to an Annex III decision must be told the system is in use, and can ask for an explanation of the role it played in the outcome.
AI literacy for the team
Art. 4
Recruiters using the tool need a sufficient level of AI literacy — applicable since 2 February 2025, and the cheapest gap on this list to close.
Classify your hiring stack — free, about 10 minutes per system
The free AnnexWise assessment classifies a system in about 10 minutes — risk tier, open obligations and a gap report, with article references throughout. It runs in your browser; answers never leave your device.
Run the free assessment →What to ask your ATS vendor this week
Your Article 26 duties depend on information only the provider holds; their Article 13 duty is to give it to you. Send these eight questions as they are — the quality of the answers tells you as much as the answers.
- Do you classify this product as a high-risk AI system under Annex III point 4 — and if not, on what documented basis?
- Can we see the Article 13 instructions for use: intended purpose, known limitations, accuracy metrics and required oversight measures?
- Is there an EU declaration of conformity and CE marking, and is the system registered in the EU database under Article 49?
- What accuracy and bias metrics do you publish, measured on which population, and how often are they re-measured (Arts. 10, 15)?
- What does the system log automatically, and how do we export and retain those logs for six months (Arts. 12, 26(6))?
- Which controls let our recruiters override or stop a ranking, and how is that recorded (Art. 14)?
- Which of our configuration or fine-tuning options would make us the provider under Article 25?
- What is the serious-incident channel and your reporting timeline (Art. 73)?
The GDPR layer on top
Hiring AI is one of the clearest cases of two regimes on one system. Article 22 GDPR governs solely automated decisions with legal or similarly significant effects — a rejection qualifies — and a DPIA is very likely required for systematic candidate evaluation. National employment law adds its own layer: works-council co-determination over monitoring technology, and Article 88 GDPR opening the door to stricter national rules in the employment context. Passing one of these regimes tells you nothing about the others; the AI Act vs GDPR guide maps where they overlap and where they do not.
A defensible 30-day position
- Inventory every tool that touches hiring, promotion, task allocation or performance — including features inside HR suites you did not buy separately.
- Kill any workplace emotion-inference feature immediately and record the date you did it.
- Classify each remaining tool and write down the reasoning, including any derogation the vendor claims.
- Send the vendor questions above; file the answers with the classification.
- Name the oversight owners, train them, and record the training.
- Notify workers’ representatives and update candidate-facing notices; turn on log retention.
None of this requires a consultancy engagement — it requires an inventory, a defensible classification per system, and a dated record of both. That is the same sequence the compliance checklist applies company-wide, and the deployer guide covers for the non-HR systems you will find along the way.
Frequently asked questions
→The AI only ranks candidates — a recruiter makes the decision. Is it still high-risk?
Yes. Annex III point 4(a) covers systems intended to be used for recruitment or selection, expressly including placing targeted job advertisements, analysing and filtering applications, and evaluating candidates. Nothing there requires the decision to be automated; assisting the decision is enough. The Article 6(3) derogation for narrow or preparatory tasks does not rescue you either, because it never applies where the system performs profiling of natural persons — and scoring or ranking people against predicted job performance is profiling.
→Our video interview tool scores confidence and enthusiasm. Is that allowed?
If it infers emotions of a natural person in the workplace context, no — Article 5(1)(f) prohibits emotion inference in the areas of workplace and education institutions outright, with narrow exceptions for medical or safety reasons. Recruitment for a workplace sits inside that prohibition, and it has been applicable since 2 February 2025 in the €35M / 7% penalty tier. Inferring sensitive attributes from biometric data is separately prohibited under Article 5(1)(g). This is the one HR AI question where the answer is stop, not document.
→Do we need a FRIA for our hiring AI?
Usually not, and this is widely misreported. Article 27 obliges deployers that are bodies governed by public law or private entities providing public services, plus deployers of credit-scoring and life/health insurance-pricing systems. A private-sector employer running an applicant tracking system generally falls outside it — a public authority or a public-service provider hiring with the same tool does not. A GDPR Article 35 DPIA, by contrast, is very likely required for systematic evaluation of candidates, and many employers run a voluntary FRIA-style assessment anyway because works councils and clients ask for one.
→Do we have to tell candidates and employees?
Yes, on two separate tracks. Article 26(11) requires deployers of Annex III systems that make or assist decisions about people to inform those people that the system is being used on them, and Article 86 gives them a right to an explanation of the role the system played in the decision. Separately, Article 26(7) requires employers to inform workers' representatives and affected workers before putting a high-risk system into use at the workplace — that duty runs before deployment, not after, and national works-council law often adds consultation or co-determination rights on top.
→We're a US company hiring for our EU entity. Does this reach us?
Yes, on both roles. The Act applies to providers placing systems on the EU market and to deployers established in the Union, and it reaches providers and deployers in third countries where the output of the system is used in the Union. A US-headquartered employer screening candidates for European roles is a deployer of a high-risk system; a US HR-tech vendor whose customers use it in the EU is a provider, and needs an authorised representative in the Union under Article 22.
Where does your AI system actually stand?
The free AnnexWise assessment classifies a system in about 10 minutes — risk tier, open obligations and a gap report, with article references throughout. It runs in your browser; answers never leave your device.
Run the free assessment →Keep reading
AnnexWise is compliance software, not a law firm; this guide is general information about Regulation (EU) 2024/1689, not legal advice for your situation. Verdict logic is documented on the methodology page.