Tech companies and business lobbying groups had fought hard against the legislation, arguing it would hamper innovation and put European companies at a competitive disadvantage. The U.S. Chamber of Commerce called it "a regulatory overreach that will stifle the most productive technology of our generation."
But labor unions and worker advocacy groups celebrated the vote. "We've seen too many cases of people being fired by algorithm with no recourse," said Anna Björkman of the European Trade Union Confederation. "This law puts guardrails around a technology that was running unchecked."
Labor advocates outside the European Parliament ahead of the vote.Companies found in violation face fines of up to 6% of annual global revenue, even steeper than penalties under the existing AI Act. The law also grants workers the right to request a full explanation of any AI system used in evaluating their performance, and to challenge decisions through a dedicated ombudsman process.
Several major U.S. tech firms, including Amazon and Meta, said they were reviewing the legislation and would update their European operations accordingly. Amazon, which has faced criticism over its use of AI in warehouse worker management, declined to comment on specific changes but said it was "committed to complying with all applicable laws."