European employers are rapidly adopting workforce technology, but many are lagging in AI compliance, putting workforce management and regulatory obligations at risk. That’s the stark finding from global employment and labor law practice Littler’s 2025 European Employer Survey, which surveyed over 400 HR professionals, in-house lawyers and business executives across 14 European countries this fall.

The contradiction

Seventy-one percent of European employers have reassessed or are actively reassessing job responsibilities due to the implementation of AI. On the high end, in Italy, that figure reaches 79%. On top of that, more than a quarter have reduced hiring or cut jobs as a direct result of AI deployment.

Fewer than 20% of organizations say they are “very prepared” for the EU AI Act. Its provisions, which cover most workplace AI applications, take effect in August 2026, less than nine months away. The law requires high-risk AI systems to meet strict standards, including high-quality input data to prevent discrimination, proper human oversight, robust security and clear traceability of information.

By contrast, a fifth of employers report being “not at all prepared,” the same share as a year ago. Despite twelve months passing and the deadline drawing closer, overall readiness has not improved.

“AI is transforming how work gets done, but most employers haven’t built the compliance infrastructure to sustain that transformation legally,” says Deborah Margolis, Littler senior counsel in the U.K.

Read the full article here: