As Artificial Intelligence (AI) continues to transform the way businesses operate, many employers are eager to take advantage of its potential to boost efficiency, productivity, and decision-making. But while AI offers exciting possibilities, its use—particularly in employee management and monitoring—raises complex legal and ethical issues. It is essential that businesses proceed with caution to avoid unintended consequences.
A study by McKinsey shows that AI adoption amongst companies has leapt to 72%, after hovering around 50% from 2020–2023.
Companies have seen the benefits of AI amongst competitors and want to implement it into their own systems to enhance efficiency and productivity. However, there are significant risks with unknown consequences associated with AI/surveillance technology, particularly from an employment law perspective.
Surveillance or tracking what employees do can infringe on an employee’s right to privacy (e.g. location tracking/keystroke logging). To mitigate the risk, employers should use clear monitoring policies, obtain consent, and restrict surveillance to legitimate business purposes.
Also, storing this data and making sure it is secure is key in order to keep compliant with laws such as GDPR, which can lead to significant fines that can have a huge impact, especially on smaller businesses that implement AI.
Using AI tools to perform performance evaluations or be used in hiring processes can unintentionally discriminate (e.g. race, gender, or age). To prevent this, make sure to regularly update and ensure some level of human oversight.
This could lead to wrongful termination claims if conclusions drawn solely by AI are used to dismiss.
There is a need for employers to be transparent and seek consent from employees.
Excessive use of AI/surveillance can damage relations between the employer and employees, as it can increase stress and lead to employee disengagement. Ensure transparency when implementing new tech.
To prevent the above, the best practices for employers are:
- To conduct assessments on new tech before implementing.
- Establish a company policy for AI use.
- Maintain audit trails to demonstrate compliance with the policy and that no abuse has taken place.
- Engage employment law specialists to review policies and practices regularly.
How Wilkes Can Help
As businesses embrace AI technologies, it’s vital they do so within the boundaries of employment law. Wilkes is here to support you in implementing AI responsibly, helping you safeguard employee rights, avoid legal pitfalls, and maintain trust within your workforce. Contact James Leo, Partner, Employment: on 0121 733 8000 or [email protected], or reach any member of our Employment Team at 0121 233 4333 to see how we can help.
