UK firms warned as EU AI Act transparency rules take effect

The European Union’s AI Act transparency requirements took effect on 2 August 2026, requiring public-facing AI systems such as chatbots and AI-generated content to identify themselves clearly. Moleworks Solutions says the rules can apply to UK businesses whose AI systems, models or outputs are used by or placed on the EU market, including a UK recruitment firm shortlisting candidates for an EU client.

The EU AI Act classifies AI systems into four risk tiers. Eight practices deemed unacceptable, including emotion-recognition technology in workplaces and classrooms and biometric systems that infer sensitive personal traits such as health status, have been banned since February 2025. Breaches can draw fines of up to €35 million or 7% of global turnover, while high-risk breaches can reach up to €15 million or 3%.

Rachael Mole, director of Moleworks Solutions, warned that AI recruitment and HR tools can disadvantage disabled people by penalising employment gaps, producing discriminatory job adverts or failing to accommodate different communication styles. The EU’s high-risk rules for recruitment, worker management and access to employment have been delayed to December 2027, but UK employers’ duties under the Equality Act 2010 already apply to AI-driven hiring processes.