How the EU's new AI law will shape the Czech labor market

The EU’s maiden Artificial Intelligence (AI) Act will take effect in Europe from the start of next month, requiring companies in Czechia to comply with new regulations on AI in the coming two years. As Czechia sees AI increasingly influencing labor market trends, the new regulation will curb misuse of the technology.

The new act aims to ensure that AI is used in a safe and ethical manner, the EU says, and to address potential risks that may arise from its use. The law is part of a larger effort to promote trustworthy AI, support innovation in this field, and increase transparency. 

The EU wants to ensure that the technology doesn’t jeopardize people: for example, predictive police surveillance – AI that evaluates the probability that a person will commit a crime – will be prohibited. The EU also aims to require a “conformity assessment” before a given AI system is put into service or placed on the market. This will be to reduce high-risk activities that could harm infrastructures (such as banking).

From Feb. 2, 2025, general provisions and prohibited practices in the field of AI will apply, and by Aug. 2, 2025, all EU countries must clearly inform businesses of the law. Authorities, companies, and administrative bodies will then have 12 months to implement any changes. The rules will apply to companies within the EU and even to those outside, but that affect EU citizens or markets (such as Meta and Alphabet).

"It may seem like there is plenty of time to prepare, but the opposite is true," director of the Czech AI Association Lukáš Benzl told Czech media outlet Novinky.cz. "I appeal to Czech companies to start preparing for the new regulations and obligations immediately,” he said.

Director of research firm Creative Dock AI Adam Hanka says: "The act aims to set rules for the use of AI to benefit society while minimizing its unwanted impact. Many companies are already preparing for the new rules.”

In Czechia, the future of work is rapidly changing due to digitization and AI. According to the Ministry of Labor, up to 50 percent of jobs could be transformed or even disappear entirely in the next few years. Interest in retraining courses focused on these skills, however, remains low.

"The state should motivate people to take [AI] courses," says Ondřej Hanuš from ITjede.cz. "Companies need prepared employees to meet the demands of digitization and automation."

According to Alma Career's Tomáš Dombrovský, there are still not enough people with digital skills, but the situation is expected to improve. "In the coming years, hundreds of thousands of people will go through these courses," he says. "The situation in the labor market is changing, and the need for these skills will only continue to grow."

The Ministry of Labor predicts that routine, repetitive work in industries like manufacturing, agriculture, and sales will be the first to change. Even knowledge-based activities in fields like banking and insurance are moderately at risk. 

International staffing firm ManpowerGroup told Expats.cz that AI would change Czechia’s labor landscape by creating new, different specialized jobs – with a particular focus on AI experts and those who are highly familiar with the technology. 

“The rapid growth in demand for AI professionals, from data scientists to machine learning engineers, has far outstripped the supply of qualified individuals,” said ManpowerGroup.

The ministry estimates that by 2030, over 90 percent of jobs will require basic digital skills, up from 54 percent currently. "Up to 2 million workers will have to learn these skills additionally," concludes the ministry.