Essity joins European Commission’s AI initiative

In August, new legislation regulating the use of artificial intelligence (AI) came into effect in the European Union, focusing on risk mitigation according to AI’s potential impact. To ensure compliance, the European Commission launched an initiative known as the The AI Pact, inviting companies to adopt an ethical and safe approach to implementing this technology.

Among the 114 companies approved by the European Commission to be part of the pact is Essity, a global company based in Stockholm, Sweden. With 36,000 employees and well-known brands such as Libero, Libresse, Tena, and Tork, Essity has started using AI in various aspects of its operations, from optimizing logistics flows to training factory personnel.

Carl-Magnus Månsson, Essity’s Chief Digital and Information Officer, stated, “Digital technology has been part of our daily lives for quite some time, and we’ve been actively working to use digital capabilities in ways closely aligned with the values we want to create. We treat AI as an extension of the digital capabilities we’ve built over many years. With AI, we can, for instance, conduct even better analyses, become more efficient, and create an even better customer and consumer experience”.

Essity voluntarily joined the Responsible AI Pact, a decision that Månsson said was an easy one. “When the opportunity to join arose, it was an easy decision for us. We see it as a good investment to continue developing Essity and perhaps even influence the world around us”. The pact encourages companies to take measures to ensure the ethical use of AI, including governance strategies, identifying high-risk systems, and promoting AI literacy among their staff.

Månsson emphasized that while AI presents great opportunities, the company has also developed ethical policies to mitigate potential problematic uses, such as the automation of recruitment processes, which could introduce bias. Additionally, Essity actively collaborates in interpreting and developing European regulations to ensure proper compliance.

With the rise of AI, one of the biggest challenges for companies in Europe is the increasing regulatory burden. However, Månsson expressed confidence that Essity can remain competitive in this regulatory environment. “We already operate in highly regulated environments and are used to implementing new legislation effectively”, he concluded.