July 2025 Newsletter

Collaboration between Konfer and SproutsAI helps large enterprises to find, screen, and shortlist top talent at unprecedented speed while ensuring adherence to multifaceted international recruitment regulations

Modern enterprises face challenges in recruiting due to global talent market regulations. These vary by job type, location, and industry, creating compliance issues that slow down hiring for key roles. For instance, the U.S. Equal Employment Opportunity Commission (EEOC) enforces anti-discrimination laws. Key federal laws include:

• Title VII of the Civil Rights Act of 1964: prohibits discrimination on the basis of race, color, religion, sex, and national origin.
• The Age Discrimination in Employment Act (ADEA) of 1967: protects individuals who are 40 years of age or older from employment discrimination based on age.
• The Americans with Disabilities Act (ADA) of 1990: prohibits discrimination against qualified individuals with disabilities and requires employers to make reasonable accommodations.
• The Equal Pay Act of 1963: mandates equal pay for men and women who perform substantially equal work in the same establishment.
• The Genetic Information Nondiscrimination Act (GINA) of 2008: prohibits discrimination based on genetic information.

These laws cover all employment processes, including ads, recruitment, applications, hiring, and pay. "Disparate impact" refers to neutral practices that negatively affect protected groups without intent.

Ashis Khan Advisor, Founding Team Member, Konfer

Niraj Rai Founder and CEO, SproutsAI

Ashis Khan at Konfer interviewed Niraj Rai, Founder and CEO of SproutsAI, to learn more about their approach.

Niraj explained that SproutsAI's AI platform improves the hiring process by automating tasks like job descriptions, candidate sourcing, resume screening, interview scheduling, and outreach.

This helps HR teams create efficient, high-performing teams, but they must comply with IT, Governance, Risk, and Compliance (GRC) rules. To ensure compliance, Niraj partnered with Konfer, which offers AI tools for analyzing legal documents, generating controls, and monitoring compliance.

SproutsAI uses Konfer internally to ensure their automated hiring process aligns with regulations from dataset training to workflow management.

"Large enterprises are eager to leverage the speed and efficiency of our agentic AI for hiring, but they operate in a zero-tolerance environment for compliance failures," explained Niraj Rai. "Our partnership with Konfer.ai is a direct response to this need. By partnering with Konfer, we provide a solution that not only hires at the speed of light but also navigates the complexities of global regulations with precision. This Konfer-led governance process is a key differentiator for us in the market, giving our clients the confidence to adopt our advanced AI with the assurance of continuous compliance."

Automate Compliance Checks: Konfer.ai's system flags potential compliance issues in real time within SproutsAI, covering data privacy, anti-discrimination laws, and fair hiring practices across jurisdictions.

Maintain Compliant Datasets and Algorithms: SproutsAI's AI models and data are regularly monitored and updated to meet regulations, reducing algorithmic bias and the risk of non-compliance.

Streamline Governance and Reporting: Konfer's technology offers a transparent audit trail and reporting, enabling enterprises to show due diligence and strong governance to stakeholders and regulators.

The partnership between Konfer and SproutsAI empowers organizations to not only win the war for talent but to do so with the confidence that their hiring practices are both efficient and impeccably compliant on a global scale.

Regulations in the Food and Beverage Manufacturing Industry

July marks the vibrant summer season, filled with sunlit afternoons, barbecues, and festive gatherings. The food and beverage industry shines with sizzling burgers and refreshing craft beers.

However, manufacturers must carefully navigate complex regulations to ensure quality and compliance.

The Hidden Ingredient: A Full Plate of Regulations

Bringing food or beverage products to market requires strict adherence to safety and compliance standards. Manufacturers must follow the Federal Food, Drug, and Cosmetic Act (FFDCA) and Hazard Analysis and Critical Control Point (HACCP) plans. Every stage of production is scrutinized, from sourcing raw materials to packaging. Labeling regulations, governed by the Fair Packaging and Labeling Act (FPLA) and the Nutrition Labeling and Education Act (NLEA), are detailed, including font sizes on nutrition panels.

For alcoholic beverages, the Alcohol and Tobacco Tax and Trade Bureau (TTB) and the Federal Alcohol Administration Act (FAA Act) add additional rules, covering formula and label approvals, distribution laws, and advertising guidelines.

Keeping up with these evolving federal and state mandates is demanding, consuming time and resources that could be used for innovation and business growth.

How Konfer Is Ready to Help

• Automated Regulatory Insights: Our AI platform processes regulations, including FDA and TTB guidelines, converting them into clear governance protocols for your products and operations.
• Proactive Compliance Management: Konfer offers real-time assessments of compliance in the Food and Beverage Industry. Our system identifies gaps between current processes and regulatory requirements, enabling proactive issue resolution.
• Streamlined Audits and Reporting: Konfer automates compliance evidence generation and maintains a traceable record of regulatory adherence, cutting down audit prep time and stress.
• Stay Ahead of Change: Regulations evolve. We monitor updates that affect manufacturers' businesses. Konfer alerts them to changes, providing steps to remain compliant and keep Food and Beverage manufacturers ahead of the curve.

August 2, 2025: A milestone fate for the EU AI Act for which enterprises use Konfer's Actionable Control Questions to assess AI risks, risk posture, and risk mitigation measures

August 2, 2025, is pivotal for enforcing the EU AI Act. This date marks when Member States must establish administrative and enforcement structures, including designating authorities and setting penalty frameworks. General-Purpose AI providers will face key governance obligations and potential regulatory intervention from the Commission if self-regulation fails. These deadlines are crucial for turning the EU AI Act into effective regulatory oversight.

Key Milestones

• For Providers of General-Purpose AI (GPAI) Models: GPAI models sold or deployed before August 2, 2025, must comply by August 2, 2027. This date marks the start of governance obligations for providers. If no suitable code of practice is finalized, the AI Office may establish rules via implementing acts.
• For EU Member States: Member States must appoint national competent authorities ("notifying authorities" for conformity assessment bodies and "market surveillance authorities" to enforce AI system rules) and publish contact details. They must also report on resources and set effective, proportionate, and dissuasive penalties for non-compliance.
• For the European Commission: The Commission will annually review prohibitions on unacceptable risk AI practices and may issue implementing acts if voluntary codes for GPAI models are insufficient.

Leaders' Perspective on Emerging Risks

Financial institutions across Europe are gearing up for this milestone. In her recent article, "Emerging Risks in 2025: What GRC Leaders Should Prepare For," Charmaine Calleja, Head of Financial Crime Compliance/MLRO at Lidion Bank, highlights how GRC leaders leverage AI to meet these new demands.

Lidion Bank, focusing on digital and tech industries, serves over 500 corporate clients and processed payments exceeding €1 billion in 2023.

Calleja writes:

"AI and machine learning have brought innovation to risk management, enabling automated processes, anomaly detection, and early risk identification. However, these benefits are accompanied by new risks, including ethical dilemmas, bias, and integration challenges.

To ensure responsible AI adoption, organisations must:

• Establish clear governance structures;
• Promote accountability and transparency; and
• Uphold data integrity.

Responsible implementation will allow businesses to harness the benefits of AI while mitigating potential harm."

Automation and Strategic GRC Management

Calleja notes that automation is a cornerstone of modern GRC strategy. Real-time dashboards and automated analytics empower teams to identify trends, detect gaps, and take proactive actions. With consistent execution and thorough documentation, organizations can improve their compliance posture and strengthen operational resilience.

Wishing you a truly great July, filled with warmth, sunshine, and endless possibilities! Remember to enjoy the season safely by following all the important signs and guidelines, whether you're at the beach, on the road, camping, flying, or simply enjoying delicious food. "The Summer looks out from her brazen tower, through the flashing curtains of July."

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