EU AI Act compliance: new AI literacy requirements now in effect

Ensuring compliance with the EU AI Act

The EU AI Act aims to ensure that AI systems are trustworthy, human-centric and protects individuals’ fundamental rights. With the next phase of requirements now in effect, organisations must ensure that they are now compliant with the provision of AI literacy. 

AI literacy requirements

AI literacy is a now a regulatory requirement and is crucial for achieving AI benefits.

Article 4 of the EU AI Act mandates that providers and deployers of AI systems ensure a sufficient level of AI literacy among their staff and others dealing with AI systems. This includes considering their technical knowledge, experience, education, training and the context in which AI systems are used, as well as the persons or groups affected by these systems.

In essence, AI literacy means understanding, using and critically evaluating AI applications and their outcomes, considering their use and risk factors.

Our work with clients to date has demonstrated that communication and upskilling significantly impact adoption rates, understanding and confidence while bolstering benefit realisation. This offers a win-win for organisations to boost productivity, efficiency and creativity, and enhance customer and employee experiences while managing AI risks and demonstrating a commitment to responsible AI practices.

Who needs to comply?

The provisions of Article 4 apply to:

• Providers of AI systems: entities that develop or have AI systems developed and place them on the market or put them into service under their own name or trademark.
• Deployers of AI systems: entities using AI systems under their authority, except for personal non-professional activities. In other words, any organisation that has rolled out AI that employees will use as part of their role. 

How to achieve AI literacy

To maximise AI benefits while protecting fundamental rights, health, safety and enabling democratic control, AI literacy target audiences (providers and deployers) should be equipped with the necessary skills, knowledge and understanding to:

• gain awareness of AI opportunities, risks and potential harm; and
• make informed decisions about AI system deployment.

 This involves considering:

• the technical knowledge, experience, education and training of the AI literacy target audience (providers and deployers) to enable them to monitor, control and safeguard responsible AI use by AI-literate individuals;
• the context in which AI systems are used; and
• the persons or groups affected by AI systems.

With the rise of enterprise Generative AI, most organisations will likely need to comply with Article 4 of the EU AI Act. This poses a challenge for AI system providers and deployers to meet AI literacy requirements and be accountable for their efforts and outcomes. Currently, the EU AI Act does not specify the skills, knowledge or understanding needed to achieve AI literacy, leaving these aspects uncertain. Despite this, organisations must develop and implement AI literacy programmes and adhere to regulatory requirements and timelines.

AI literacy upskilling considerations  

The definition of ‘AI literacy’ in the EU AI Act refers to the need to develop three layers of competency aimed at the informed use of AI systems: knowledge, understanding and skills. 

• Knowledge: this involves learning factual information about AI concepts and practices, including basics like machine learning, neural networks and data analysis. Employees should understand AI terminology and fundamental principles.
• Understanding: grasping the reasons behind AI information to apply it in various contexts. This includes knowing why certain AI models are chosen for specific tasks and why ethical considerations are important, aiding informed decision-making and effective application of AI knowledge. 
• Skills: this involves applying AI knowledge in daily practice. Employees should use AI tools, interpret outputs and integrate solutions into workflows. Skills development includes hands-on training and continuous practice to ensure proficiency.

Topics include:

• conceptual understanding of AI;
• understanding AI in a business context;
• understanding AI risk and trustworthy AI; and
• practical understanding of Responsible AI.

This list is not exhaustive and not tailored to specific sub-target groups within organisations. Other relevant topics may include AI governance, AI accountability, and human-centric AI design. 

Early AI literacy practices show that some topics are appropriate to deliver across the organisation (e.g. conceptual understanding of AI), while some are most impactful when tailored to sub-audiences within the organisation. The latter applies to modules that are more sensitive to specific (generative) AI applications and tools or where different personas in the organisation may benefit in a different way from general purpose AI applications and tools. These considerations are important in shaping organisational AI literacy programmes that meet the EU AI Act’s requirement to take into account the context in which the AI systems will be used. 

AI literacy will be an ongoing learning journey for years to come. Therefore, an AI literacy plan developed now must include a vision for continuous learning, keeping up with AI advancements, new regulations and societal considerations, and proactively supporting this process with resources.