Digital transformation

The Impact of EU's AI Act on Accounting and Payroll Services in Hungary

The European Union’s AI Act, set to be implemented in stages, will significantly impact various industries, including accounting and payroll services. As such a service provider in Hungary, Process Solutions has assessed how the regulation will affect our operations and compliance requirements, and what accountants and payroll professionals should generally pay attention to in the upcoming months.

European Union's AI usage regulation act

30-01-2025

News

Hungary

European Union's AI Act, AI usage regulation, AI, AI technologies, accounting outsourcing, payroll services, professional life at PS

Implementation Timeline

While the EU AI Act entered into force on August 1st, 2024, it will be applied in three phases as per Article 113:

  1. From February 2, 2025: Chapters I and II, which cover “General Provisions” and “Prohibited AI Practices,” will come into effect. These sections include essential guidelines for AI competency, requiring training for employees using AI based on their professional experience and the application context.

Our company has already addressed this requirement with the release of the AI Guidelines back in 2023, and we are committed to continuously training and raising the AI-awareness of our colleagues through interactive events and dedicated action-groups related to potential AI use cases.

  1. From August 2, 2025: Sections such as Chapter III, Section 4, Chapter V, Chapter VII, and Chapter XII (excluding Article 101), along with Article 78, will be enforced. This phase primarily focuses on establishing the institutional framework and enabling the registration and supervision of relevant organizations.
  2. From August 2, 2027: Article 6(1) and related obligations within the regulation will be applied. This final phase will ensure comprehensive compliance with the AI Act.

 

Key Provisions Relevant to Our Business

The initial application phase, starting February 2, 2025, includes “General Provisions” and “Prohibited AI Practices.” Among the prohibited practices are:

  • Cognitive behavioural manipulation
  • Social scoring
  • Biometric identification and categorization
  • Live biometric identification, such as facial recognition systems

While we are closely monitoring the safe and responsible use of AI within our organization, these practices are highly unlikely to be encountered in our regular business operations, making them less relevant to our services.

For example, our primary use of AI involves automating routine accounting tasks, such as data entry and invoice processing, which do not fall under the prohibited practices. This ensures that our AI applications remain compliant with the new regulations while enhancing efficiency and accuracy in our services.

 

Conclusion

The AI Act represents a significant regulatory shift aimed at ensuring the safe, transparent, and human-centric use of AI. For our accounting and payroll services, the primary focus will be on training our staff to meet AI competency requirements and staying informed about the evolving regulatory landscape.

Moreover, the security and trustworthiness of our services are paramount. As we integrate AI into our operations, we must ensure that our systems are secure and that client data is protected. Trust is the foundation of our business, and by adhering to the AI Act, we can reinforce our commitment to providing reliable and compliant services to our clients. By proactively addressing these changes, we can continue to uphold the highest standards of security and trustworthiness in our industry.

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