The EU Artificial Intelligence Act is officially here. From 2 February 2025, businesses operating in the European Union must ensure their employees have adequate AI literacy to use and manage AI responsibly. This requirement is part of a broader regulatory framework that promotes transparency, accountability, and ethical AI use across industries.
While Australia has yet to introduce similar mandates, the EU’s proactive stance signals a global shift in AI governance. For businesses operating internationally—or those simply looking to remain competitive—AI training isn’t just a compliance measure; it’s a business necessity.
What Does the EU AI Act Require?
The EU Artificial Intelligence Act (Regulation (EU) 2024/1689) sets a risk-based framework for AI systems. From today, organisations must:
Provide AI literacy training to employees working with AI, ensuring they have the knowledge and skills to handle AI systems responsibly.
Comply with risk classification measures, where AI applications are categorised as minimal, limited, high, or unacceptable risk.
Ensure transparency and accountability, particularly for high-risk AI systems that influence employment, credit scoring, or public services.
High-risk AI systems will require strict oversight and compliance checks. Meanwhile, AI models that pose unacceptable risks, such as manipulative algorithms and social scoring systems, are outright banned.
What This Means for Australian Businesses
Australia has yet to introduce a mandatory AI training requirement, but we are seeing increasing calls for ethical AI governance and responsible adoption. With global regulatory trends moving towards AI accountability and workforce readiness, it’s only a matter of time before similar expectations reach Australian businesses.
Even without regulation, AI training drives real business benefits. Organisations investing in AI literacy see:
Higher productivity – A study published in Nature found that AI literacy directly improves confidence in AI decision-making, boosting efficiency and reducing uncertainty in AI-assisted roles (Nature).
Improved decision-making – AI-driven insights help businesses act faster, but without training, employees risk misinterpreting data and making flawed business decisions.
Future-proofed teams – The World Economic Forum predicts that 58% of employees will need reskilling due to AI over the next five years (World Economic Forum).
AI Literacy: A Competitive Advantage, Not Just Compliance
At Ai Her Way, we’ve long advocated for AI literacy as a leadership skill, not just a technical requirement. As Dr. Nici Sweaney, CEO and AI thought leader, explains:
“AI literacy is the difference between being a business that adapts and thrives, versus one that struggles to keep up. The companies that invest in AI knowledge today are the ones that will lead tomorrow.”
Building an AI-literate workforce means ensuring every employee understands how AI impacts their role, decision-making, and industry. Organisations that prioritise AI education will not only avoid regulatory risks but also gain a competitive edge by fostering innovation, efficiency, and ethical AI use.
How to Get Your Team AI-Ready
To build AI literacy within your organisation:
Assess your AI knowledge gaps – Identify which employees need AI training and at what level.
Develop structured training programs – Include technical, ethical, and practical applications of AI.
Foster a culture of continuous learning – AI isn’t static. Keep your teams updated with the latest developments.
Leverage external expertise – Partner with AI educators to deliver high-impact training tailored to your industry.
Are You Ready for the AI Era?
The EU has made its move. The question is: How prepared is your business?
At Ai Her Way, we specialise in AI literacy training, capability-building, and AI strategy development for businesses that want to lead in the age of AI.
Want to equip your team with the knowledge they need? Let’s talk. 🔗 Get in touch
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