The Employer’s Guide to Navigating AI in the Workplace

According to McKinsey, employees are more ready for artificial intelligence than most leaders realize. While this trend should encourage employers to move forward with their AI implementation plans, they must also be cautious regarding the nature and scope of deployment.

Employers integrating AI tools must be proactive in managing their legal exposure and employee concerns. Emerging compliance regulations make matters even more complicated. Working closely with a knowledgeable lawyer for employers is critical in this landscape.

How AI Is Being Used in the Workplace

Artificial intelligence applications in the workplace include:

• Recruitment screening tools
• Employee productivity monitoring
• Chatbots for HR support
• Predictive analytics for performance management

While these tools can help your team get more done, they may also create risks associated with discrimination, data privacy, and labor practices.

Key Legal Risks Employers Must Address

As an employer, you must set the stage for successful AI policy implementation in the workplace by identifying the risks in front of you. Some primary legal considerations include:

• Bias and Discrimination: AI recruiting tools have been accused (sometimes correctly) of exhibiting bias against protected classes
• Invasion of Privacy: AI tools need lots of data to deliver results, but that information must be sourced ethically and transparently
• Retaliation Claims: AI-driven termination shouldn’t disproportionately affect older employees or those entitled to accommodations

Artificial intelligence solutions drastically reduce the role of humans in redundant processes. While this change can be a net positive for your business, it can also negatively impact certain groups. A lawyer for employers can help you address these concerns before you roll out AI-driven tools.

Regulatory Guidance Is on the Horizon

Until recently, regulators have struggled to keep pace with the development of AI. Finally, legislators appear to be gaining a bit of ground. The most notable proposal thus far is the White House’s “Blueprint for an AI Bill of Rights,” a document that outlines principles concerning fairness, transparency, and media privacy in automated systems.

State-level legislators are also working on developing frameworks to regulate automated decision-making. You must be conscious of these proposals so you can adjust your AI policies accordingly.

California has just released new AI employment regulations that employers need to pay attention to. These new rules require transparency around the AI used in hiring, firing and managing employee performance. Employers must also make sure their AI isn’t inadvertently biased against protected classes and regularly test for fairness. And now there’s a requirement to inform employees how AI is being used in their workplace. Businesses need to stay on top of these regulations or risk lawsuits and damage to their reputation.

California employers should take the time to review these rules and consult with their lawyers to make sure they are in compliance. California is leading the way, so these regulations may be a template for other states to follow.

Best Practices for Responsible AI Integration

You must implement any artificial intelligence solutions you intend to use responsibly. Here are five best practices to help you achieve a compliant, safe, and efficient integration:

Perform an Impact Assessment

Determine how AI tools will affect your employment decisions and the day-to-day lives of your employees. Consulting a lawyer for employer compliance and risk analysis can help you gain a clearer picture of the effects AI is likely to have in your organization.

As part of this process, you should also consider how many employees might be displaced. Is there a way to retain those workers through upskilling or reskilling? Can you salvage loyal employees and use their new skills to fill gaps within your workforce? These are important considerations when exploring the impact of AI tools.

Be Transparent With Your Workforce

Some employees might be apprehensive about AI. A lack of transparency can exacerbate this problem. In turn, staff members may face fears of job loss or “being replaced.”

Bring your team members into the fold before you implement any artificial intelligence solutions, and clearly inform them about how they’re using these tools, whether for monitoring, evaluation, or customer service. Surprises can erode trust in your decision-making.

Consider organizing town hall-style meetings or soliciting feedback via anonymous surveys. If your employees express concerns, address them directly. If they feel like they’re being heard, they’ll be more receptive to any new technologies you introduce. By contrast, forcing AI into the pipeline could create change resistance.

Audit Your AI Tools Regularly

You can’t simply turn artificial intelligence loose and assume it’s working as designed. The technology is still far from perfect.

With that in mind, conduct periodic audits to identify areas of disparate impact. For example, if protected classes of candidates are consistently being pushed to the bottom of the applicant pool, it could lead to lawsuits or fines.

If necessary, seek guidance from a lawyer for employers or enlist the services of a third-party auditor. Bringing in outside help can give you an objective look at your AI initiatives.

Train Your HR and Management Teams

Managers must understand the risks and responsibilities tied to AI use. If they don’t, the risk of misuse grows exponentially. Your human resources department should also be trained on artificial intelligence. Investing in quality training promotes adoption and can condense the time to value for this technology.

Partner with AI technology providers to design focused, role-specific training programs. Try to deliver content that’s most relevant for each team member’s anticipated use case. If training is timely and relevant, your staff will be much more likely to remain engaged.

Consult a Lawyer for Employers

Don’t wait until you find yourself embroiled in AI-related employment litigation to meet with a legal professional. The best time to talk to a lawyer for employers is prior to implementing the technology. An experienced attorney can help you anticipate points of conflict and assess vendor compliance.

Why Legal Counsel Is Essential

A lawyer for employer protection can help safeguard your business by:

• Drafting compliant AI use policies
• Vetting AI vendors and contracts
• Identifying potential issues before they arise
• Advising you on employee consent and notice requirements
• Shielding your reputation and company culture
• Defending you against claims stemming from automated decision-making

Being proactive will allow you to embrace the potential benefits of AI while insulating your business from the risks associated with this emerging technology.

Is Your Workforce Ready for Artificial Intelligence?

Adopting AI has become a non-negotiable for businesses in virtually every industry. If you don’t start integrating artificial intelligence into your workflows, you risk getting left behind.

However, embarking on your AI journey requires caution and due diligence.

Letting artificial intelligence tools run rampant in key processes like candidate screening and performance analysis can lead to serious liability. Employment disputes stemming from the use of AI could discourage future adoption efforts and engender change resistance among your workforce.

With a measured approach and proper oversight, however, AI technologies can be a force for good within your organization.

If you have questions about properly navigating AI in the workplace or general questions about employment law, reach out to one of our employer defense attorneys at Pearlman, Brown and Wax, LLP.