According to an article from the National Law Review, the Hamburg Labour Court's recent decision emphasizes the need for employers to manage the use of AI in the workplace responsibly. The impending implementation of the EU AI Act, which follows a risk-based approach, requires companies to assess AI tools for compliance. This Act affects anyone involved in the AI lifecycle, including employers using AI in HR functions. Companies must disclose AI-generated content, assess risks, and ensure ethical use to avoid significant fines. Detailed policies are necessary to address AI usage, data input, confidentiality, data protection, and approval processes.