Welcome to another insightful edition of 5 Minute Friday! This week, Jeff Arnold cuts through the noise and delivers five actionable stories that every HR leader needs to know. From California’s final AI employment rules to new AI compliance deadlines in the EU, major lawsuits, and a sobering industry report on AI ROI, this post unpacks it all for your organization. Read on to stay ahead of HR and AI compliance trends – and don’t miss the in-depth recommendations on how to prepare for what’s next. 1. California Finalizes Game-Changing AI Rules for Employment The California Civil Rights Council has finalized new regulations covering the use of automated decision systems (ADS) in hiring, promotion, training, and beyond. Starting October 1st, any AI or algorithmic system causing discrimination will be deemed unlawful under the Fair Employment and Housing Act (FEHA). What should HR teams do to comply? Inventory every system influencing employment decisions, from screening to promotion. Confirm bias testing: Know how and by whom bias is tested. Maintain records: Store artifacts, prompts, model settings, and decision logs for at least four years. Revise vendor contracts: Ensure rights to audit and export decision data. If operating in multiple states, align processes now to avoid future compliance headaches. 2. European Union AI Act: High-Risk Deadlines Are Here The EU AI Act classifies recruitment, worker monitoring, and performance scoring as high-risk. While bans and some obligations began in February 2024, the full suite of high-risk requirements roll out from August 2, 2025. Here’s how to get ready: Start your conformity assessment file today. Map every AI touchpoint in hiring and management. Define how “human-in-the-loop” is ensured for oversight. Establish incident reporting structures and name an executive owner. Document everything! Early, thorough documentation is your safeguard. 3. Workday Screening Lawsuit Escalates The Moley vs. Workday lawsuit has moved forward, with the court granting conditional certification of age bias claims related to AI-powered screening. This litigation signals that: Discovery and governance scrutiny will intensify. Employers can’t deflect responsibility onto vendors. Human oversight of automated tools is essential: keep humans in the hiring loop! Test outcomes for disparate impact across protected classes. Retain detailed records—if you can’t reconstruct a hiring decision, you risk legal exposure. 4. LinkedIn’s AI Hiring Assistant Expands Rollout LinkedIn’s new AI hiring assistant is set for broader release later this year after successful early tests. The tool drafts job posts, sources candidates, messages prospects, and schedules interviews—but great power requires great preparation. Before going live, HR leaders should: Set clear prompt libraries and tone guidelines. Define approval steps for candidate outreach. Implement logging and auditing for all AI communications. Treat the AI tool like a “junior recruiter”—invest in training and ongoing supervision. 5. MIT Study: Most AI Pilots Aren’t Delivering ROI A controversial MIT report finds that 95% of enterprise generative AI projects yield no measurable business return. But rather than abandon AI, the lesson is in narrowing focus and ramping up measurement: Target 1-2 workflows for improvement—such as screening to scheduling or candidate messaging. Set clear baselines and define measurement metrics. Assign a single, accountable process owner. Ensure data quality and strong change management for success. HR AI Compliance: Next Steps for Leaders Achieving success in AI-driven HR requires clean data, thoughtful workflow design, and audit-ready oversight. Four Spot Consulting helps teams save 25% of their day via well-planned AI and automation—delivering measurable outcomes, compliance, and peace of mind. Get Your Free Checklists: Comment “checklist” below or visit fiveminutefriday.com to receive the ADS Inventory and EU AI Prep Checklist in your inbox every week! Until next week, stay on top of HR AI compliance and lead your organization to smarter, safer people decisions! Posting Scenario URL: https://us1.make.com/30176/scenarios/3993241/logs/b0d94b9f756648eb96dcb619eb2d91e3