The European Unionâs new AI Act sets high standards for companies using artificial intelligence, emphasizing ethical usage and the need for inclusive, unbiased language. For businesses, the stakes are high: non-compliance could lead to fines, reputational damage, or lost trust. As AI becomes more central to everyday operations, ensuring compliance with regulations like the EU AI Act is critical.
Risks of Non-Compliance with the EU AI Act
- Financial Penalties: Companies face fines potentially reaching millions of euros for non-compliance, depending on the risk level of the AI system.
- Reputational Damage: AI-generated content with biased or exclusive language can harm brand reputation and lead to a loss of customer trust.
- Operational Disruptions: Non-compliance may require costly changes to AI systems, impacting business operations and delaying projects.
Witty offers a unique solution tailored to meet these needs, especially regarding language used business communication and HR. Unlike general-purpose tools like ChatGPT or Microsoft Copilot, Witty is designed specifically to help companies stay compliant and avoid the pitfalls of biased or exclusive language in their AI-generated content.
Understanding the EU AI Act and Its Importance for Language
The EU AI Act, which entered into force on August 1, 2024, sets a framework for the responsible use of Artificial Intelligence (AI) across industries, including guidelines for how language is used to represent people and groups. From 2025 onward, companies operating within the European Union must comply with strict regulations governing the ethical and inclusive use of AI. Failure to meet these standards can lead to severe consequences, including substantial finesâpotentially reaching millions of Eurosâdepending on the level of risk posed by non-compliant AI systems. Beyond financial penalties, companies also face reputational risks if their AI-generated content is found to contain biased or exclusionary language, which could harm talent and customer trust and damage brand credibility.
The Actâs requirements mean that businesses must pay close attention to how their AI communicates, particularly by ensuring language is free from bias and supports inclusion. More importantly so since the EU AI Act determined Human Resources as a 'high risk field where bias and discrimination cannot happen. Here fines are particularly high.
Inclusive Language and the EU AI Act
While the EU AI Act doesnât specifically mandate "Inclusive Language," it requires that high-risk AI systems avoid discriminatory or biased outcomes. This involves strict data governance (Article 10) to ensure AI models are trained on representative and error-free data, preventing biased outputs. Additionally, the Act mandates transparency so users understand AI capabilities and limitations. Together, these measures help ensure that AI-generated content aligns with fundamental rights, promoting non-discrimination and equality. You can read the full legal text here.
Why Standard AI Tools Like ChatGPT and Microsoft Copilot Fall Short
Nowadays, many HR departments use Generative AI like ChatGPT or Microsoft Copilot to create texts they use for job descriptions, talent communication, or internal communicationl. While these popular tools can generate content quickly and efficiently, they have significant limitations in the area of bias detection and Inclusive Language. And can get a company into legal trouble. Because these tools are not able to consistently recognize and correct language that is biased. Agentic language for exampleâterms with connotations of competition and assertivenessâcan unintentionally discriminate and exclude underrepresented groups, especially in recruitment. Or we might use language thatâwithout using any term of concrete number of yearsâstill can discriminate against people that are over 50. Example: mentioning that you are looking for a digital native in a job opening. In both cases, Generative AI tools would not detect a problem as these algorithms are not trained on ethical considerations.
Relying solely on Generative AI tools can leave companies vulnerable to compliance risks. Since these tools lack the capability to detect bias and, even if prompted to 'use inclusive language', are not capable in eliminating biased wording reliably.
How Witty Helps Ensure Compliance and Reduces Risks
Witty is purpose-built to help companies meet the EU AI Act requirements by providing specific, actionable support for Inclusive Language. Hereâs how Witty makes a difference:
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Inclusive Language Checks
Wittyâs language engine automatically identifies and flags language that could be exclusive or potentially biased, ensuring that your companyâs communications meet high standards of inclusion.
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Customization Aligned with EU Regulations
Witty allows companies to create and apply customized language guidelines that align with the EU AI Act, ensuring every piece of content meets the specific inclusivity standards required.
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Compliance Reports and Statistics
To help with audits or internal evaluations, Witty generates statistics. This data gives companies a clear view of their language practices, demonstrating active compliance with regulatory standards and reducing the risk of non-compliance.
Additional Benefits: Enhanced Inclusion and Improved Corporate Image
Beyond compliance, using Witty helps build a culture of inclusion, resonating positively with potential talents, employees and customers alike. A reputation for ethical and inclusive practices not only meets regulatory demands but also strengthens brand loyalty, fostering a workplace and customer base that values respectful and inclusive communication.
Conclusion
In light of the EU AI Act, companies must take proactive steps to ensure compliance, particularly regarding bias detection in the HR field. GenAI tools like ChatGPT and Microsoft Copilot are not reliable in this topic (see our studies on these two tools.) Witty offers the tools and customization needed to meet these standards, providing a safeguard against potential risks and supporting a commitment to inclusive language that aligns with modern social expectations.
Consider exploring how Witty can support your organization in navigating these new regulationsâboth protecting your business and enhancing its commitment to inclusion.
FAQs around the EU AI Act
Q: What is the EU AI Act and when does it come into effect?
A: The EU AI Act is a regulatory framework introduced in 2021, expected to be fully enforced by 2025. It sets guidelines for the ethical and responsible use of AI within the European Union.
Q: How does the EU AI Act address inclusive language?
A: While the Act doesn't explicitly mention "Inclusive Language," it requires AI systems, especially those used in HR, to avoid biased or discriminatory outcomes. Thereby, the Act promotes equality and non-discrimination in AI-generated content.
Q: What risks do businesses face for non-compliance with the EU AI Act?
A: Non-compliance can result in substantial finesâpotentially millions of Eurosâand reputational damage due to biased or exclusionary AI outputs. As Human Resources was defined as 'high risk' field by the EU AI Act, fines are particularly high here.
Q: How can Witty help my business comply with the EU AI Act?
A: Witty ensures that you detect bias in your AI-generated content and that you can use inclusive language. Witty detects and corrects biased terms, customizes language guidelines, and provides compliance reports.
Q: Why aren't standard AI tools sufficient for compliance?
A: Standard AI tools like ChatGPT or Microsoft Copilot do not reliably detect or prevent biased language, lacking the specialized focus on compliance and inclusion that Witty offers.
