AI in HR: This week's Top 5 Governance, Risk & Compliance Insights

Hi there,

In a world quite literally drowning in a deluge of AI news and content, your time is arguably your most valuable asset. My core mission with H.A.I.R. is to ensure you spend less time sifting and more time leading.

This week, I sifted through 276 pieces of news and content to bring you the six most essential insights in AI for HR and Talent Acquisition. My focus, as always, is on cutting through the hype to deliver practical, defensible guidance, particularly around AI governance, risk and compliance (GRC).

Here are the critical updates you need to know:

The EU AI Act's Blueprint for High-Risk HR AI

The European Union's AI Act continues to set a global benchmark for AI regulation, particularly for systems deemed 'high-risk'. Recent guidance outlines how foundation models, which often underpin HR AI tools, are expected to comply. This detailed framework provides a clear signal on the robust evaluation and transparency standards that will apply to employment-related AI systems.

What's really striking about this data is the EU's clear signal regarding risk mitigation, providing a blueprint for AI governance that will inevitably shape HR's high-risk domain. This guidance, though aimed at foundation models, outlines the robust evaluation and transparency standards CHROs must now apply to all employment-related AI systems. From talent acquisition to performance management, expect heightened scrutiny. Leadership accountability demands a proactive, structured approach to ensure safe, ethical innovation. Are your HR AI frameworks ready?

Read the full article here

The UK's Diverging Path: DUA and HR's Consent Requirements

While the EU charges ahead with prescriptive regulation, the UK is taking a somewhat different approach with its Data Protection and Digital Information Act (DUA). This new legislation redefines how organisations must consider consent, particularly regarding automated decision-making. For HR, this means navigating a nuanced shift that aims to be more innovation-friendly while retaining critical safeguards.

What's truly compelling about this data is that the UK's new DUA significantly redefines automated decision making’s consent requirements for HR, moving towards a more innovation-friendly landscape. While shedding some GDPR strictures, crucial safeguards for human intervention and contestation remain, underscoring leadership's enduring accountability. This nuanced shift highlights a growing divergence from the EU AI Act's high-risk approach. Are your HR governance frameworks agile enough to navigate these diverging global regulatory paths effectively?

Read the full article here

ISO 42001: The Standard for Operationalising AI Trust in HR

With increasing regulatory focus on AI governance, organisations are looking for practical ways to implement responsible AI practices. ISO 42001 is emerging as a critical international standard for AI management systems. It provides a certifiable framework that translates abstract ethical principles into actionable governance, addressing issues vital to HR like bias and transparency directly.

What's great about this development is that ISO 42001 provides the missing practical blueprint for HR to tackle high-risk AI in employment. This certifiable standard transforms abstract ethical principles into actionable governance, addressing issues like bias and transparency head on. It offers CHROs a tangible path to demonstrate proactive compliance and build measurable trust within their organisations. Are you prepared to operationalise trust with this robust framework?

Read the full article here

Further Essential Insights I Noticed

Beyond the main features, here are a few other critical items that caught my attention this week, along with my brief take on their significance for HR:

AI Hallucinations Could Cause Nightmares for Your Business

AI 'hallucinations' are not a flaw but an inherent characteristic of current models. Given 'employment' is a high-risk category under the EU AI Act, embedding rigorous ‘human-in-the-loop’ processes becomes non-negotiable. Our future demands this blend of humanist and technologist skills. Is your leadership team ready to truly own this critical oversight?

ISACA's Chirag Joshi warns of 'shadow AI' crisis without risk management

What's interesting to me is how clearly ISACA’s report defines ‘shadow AI’ as a direct HR governance challenge. The widespread unsanctioned use, coupled with minimal employee training, creates significant legal, operational and reputational risk, particularly with employment applications falling under the EU AI Act’s high-risk category. CHROs must urgently establish visibility and robust governance frameworks. Failure to act now transforms innovation into avoidable liability. Are your people using AI you don't even know about?

Spaces left: Public AI Masterclasses

Something I don't normally do...

My three-hour AI workshops are usually reserved for private corporate teams. But after continuous requests, I'm opening up my calendar for a limited number of public sessions this August for the very first time.

These aren't one-hour overview webinars. They are comprehensive, capability-building sessions designed for individual HR and Talent Acquisition professionals. To ensure a high-quality, interactive experience, seats are strictly limited to just 20 per workshop.

Choose the track that's right for you:

Track 1: For Recruiters & TA Professionals: The AI-Powered Recruiter Workshop This is a practical deep dive into the "how". We'll move beyond basic prompting to build the skills you need to work faster, smarter, and more strategically. You will leave having mastered the PRIME framework in a hands-on session. (Dates: 5th & 26th August)

Track 2: For HR Directors & People Leaders: The AI Readiness Workshop This is a strategic session focused on the "why" and "what". We'll cover your role as the "Ethical Guardian", build "Guardrails" for your organisation, and develop a responsible AI roadmap. (Dates: 7th & 28th August)

If you're ready to move beyond the hype and build real, practical AI skills, this is your chance. Places are offered on an approval basis to ensure the right mix of professionals.

If you have any questions or wish to discuss AI in HR GRC further for your organisation, please do reply to this email.

All the best,

Martyn

H.A.I.R. (AI in HR) 

Putting the AI in HR. Safely.