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<p>As of 2 February 2025, as part of the EU’s staggered rollout of its new <a href="https://law.utexas.edu/faculty/wschiess/legalwriting/2005/08/garner-on-contractions.html">AI Act</a>, certain businesses are required to implement AI ‘literacy measures’. This means that entities and individuals must have the skill, knowledge and understanding to make ‘an informed deployment of AI systems, as well as to gain awareness about the opportunities and risks of AI and possible harm it can cause’.</p>
<p>This might sound complicated, but it is simple enough. AI is a tool, and like any tool, it can be used incorrectly – and potentially dangerously. The AI Act’s literacy requirements simply require those who use AI in their work to understand what they are using and how to use it correctly and safely.</p>
<p>For more information on the EU AI Act and what it means for UK businesses, take a look at our previous blog post, <a href="https://linnearcms.wpenginepowered.com/resources/what-does-new-eu-ai-act-mean-your-business/">What does the new EU AI Act mean for your business?</a></p>
<h3>Key points</h3>
<p>The amount of knowledge required of staff depends on how they are using AI. For example, employees involved in implementing high-risk AI systems (e.g. in HR) need to have a high level of AI literacy. This may require a tailored approach to training, specific to the organisation’s use cases and AI systems. However, many employees will only need basic training on the fundamentals of AI.</p>
<p>Deciding who needs what level of training depends on factors such as what the organisation is, its employees roles, and how the organisation uses AI or may want to use AI in the future. As AI is a fast-developing field, it would be beneficial for companies to take the time early on to level up their employees’ AI literacy, best positioning the company for growth in a competitive and fast-changing economic environment.</p>
<h4>Does the EU AI Law apply to UK companies?</h4>
<p>Although the Act is EU legislation, the Act will affect all organisations outside the EU if the relevant AI systems affect EU citizens.</p>
<p>This will affect any UK company that provides, uses, imports or distributes AI systems, as well as service providers that integrate or customise AI systems for specific applications. Broadly, if an organisation uses AI in a professional capacity, it will be affected.</p>
<h3>How to comply and build AI literacy</h3>
<p>The EU AI Act does not specifically advise on how businesses should improve AI literacy, but in practice, businesses could consider a three-part process to complying with this change.</p>
<h4>Identify uses</h4>
<p>First, businesses should identify how and for what purpose they currently use AI systems. Are they investing in AI systems such as OpenAI’s ChatGPT or using tools like Microsoft’s Co-Pilot? Is it a core aim of the business to roll out a service that utilises AI systems?</p>
<ul>
<li>See also: <a href="https://linnearcms.wpenginepowered.com/resources/terms-and-conditions-for-smes/">Terms and conditions for SMEs</a></li>
<li>See also: <a href="https://linnearcms.wpenginepowered.com/resources/what-data-privacy-notice-why-important/">What is a data privacy notice and why is it important?</a></li>
<li>See also: <a href="https://linnearcms.wpenginepowered.com/resources/how-to-issue-shares-in-your-company/">How to issue shares in your company</a></li>
</ul>
<p>Once the business has identified who in the business might be using AI and why, it will be better positioned to understand how to improve AI literacy, as well as how to strategically align with AI for operational efficiencies and improved decision-making.</p>
<h4>Leverage expertise</h4>
<p>With this enhanced understanding of AI usage, businesses should leverage internal and external expertise. There may already be employees in the business who have experience using AI systems, as well as outside thought leaders. It’s important the business does not neglect one source of expertise over another. If internal expertise is lacking, the business may need to engage with external experts for training purposes.</p>
<p>At this stage, it’s also worth allowing employees to test AI systems. Having employees test AI platforms will give them first-hand knowledge of how AI systems can be used, how they might be abused, and what they might or might not be useful for.</p>
<h4>Feedback and documentation</h4>
<p>Finally, businesses should keep detailed records of training activities and the use of AI systems to demonstrate compliance with the Act. Employees testing AI systems should write reports on the platform they have tested. This should be a continuous process, especially as AI continues to develop at a rapid pace.</p>
<h3>When does it take effect?</h3>
<p>The EU AI Act is being rolled out in phases, with most obligations expected to be in force by 2 August 2026. As an earlier part of this rollout, the obligation for businesses to be AI literate took effect on 2 February 2025.</p>
<h3>Get your business AI literate</h3>
<p>Ever since Open AI’s ChatGPT launched, solidifying AI as a revolutionary technological tool and not just something from science fiction, AI has become a behemoth for businesses and governments alike, all of which have scrambled to understand how best to use (and not use) it. The EU AI Act reflects regulators’ attempts to control the behemoth, but there are still many unknowns on the horizon.</p>
<p>Businesses should treat the requirements to be AI literate as a going concern, and not just a one-off challenge. Understanding the benefits and pitfalls of using AI are likely to be key for successful businesses going forward – and this understanding will help businesses weather any upsets and changes that might be in store as regulators continue to grapple with AI.</p>
<p>At Linnear Legal, we offer a range of legal services, including on <a href="https://www.linnearlegal.co.uk/commercial/">commercial law</a>. If you would like to know more, <a href="https://www.linnearlegal.co.uk/get-in-touch/">speak to a solicitor at Linnear Legal today</a>.</p>


AI literacy: making sure your business complies with the new EU regulations

With the rollout of the new EU AI Act, learn how to ensure your business complies with new AI literacy requirements.

AI literacy: making sure your business complies with the new EU regulations | Linnear Legal

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