Artificial Intelligence (AI) is a key technology with considerable economic and social potential. Companies in Europe can improve their efficiency if they succeed in deploying AI in corporate processes.
In Brief #1: How companies should address AI in the workplace
In Brief #1 on AI regulation as part of the AI@Work project for the European Employers' Institute (EEI), Köln
Institut der deutschen Wirtschaft (IW)
Artificial Intelligence (AI) is a key technology with considerable economic and social potential. Companies in Europe can improve their efficiency if they succeed in deploying AI in corporate processes.
However, beside significant benefits, AI applications may also harbour risks which may counteract European values, for example if AI supports discrimination or violates people's privacy. For this reason, AI is subject to specific regulation in the EU. A comprehensive regulatory framework – the AI Act – was introduced in 2024 that focuses on harmonising various AI-related regulations and establishing a standardised set of rules across the EU. Companies in Europe that deploy or plan to implement AI must comply with this regulation. Besides the AI Act, further regulations exist that intersect with AI usage.
Steps towards a responsible use of AI in companies:
- Identify the company’s AI role:
- AI deployer (using purchased AI systems) or
- AI provider (developing and marketing own AI systems). - Assess and classify each AI application according to its risk level under the AI Act.
For high-risk AI systems, ensure human oversight, monitor performance, maintain
system logs, and report incidents to both the AI provider and relevant authorities. - Inform employees and their representatives about the use and role of AI systems,
especially for high-risk applications. - Comply with the GDPR when processing personal data, including transparency about
data storage and processing locations. - Remain responsible for data protection, even when using cloud-based AI tools from
providers outside the EU. - Ensure employees have a sufficient level of AI literacy through practical guidelines,
training programs, and leveraging employees with existing AI expertise.
How to engage in social dialogue on AI:
- Open communication and involvement of employee representatives are crucial for
successful AI implementation. - Addressing employee concerns, demystifying AI, and providing clear, accessible
information about AI systems can reduce resistance and foster acceptance. - In some EU countries, informing works councils about planned AI deployments is
mandatory.
In Brief #1: How companies should address AI in the workplace
In Brief #1 on AI regulation as part of the AI@Work project for the European Employers' Institute (EEI), Köln
Institut der deutschen Wirtschaft (IW)
AI and soft skills: Evidence from EU job postings
The influence of AI on the EU labour market has risen substantially in recent years. In 2025, 1.7% of job postings in the EU required in-depth AI knowledge – starting from 0.7% in 2022.
IW
In Brief #9: Measuring AI-exposure in online job advertisements
This methodological note details the identification of AI-related online job vacancies across the EU (for the full empirical analysis see fact sheet #14: AI skill demand in the EU).
IW