We Help Small and Mid-Size Employers (SMEs) Address AI’s Implications for Human Resources (HR)

Artificial intelligence (AI) is changing the way companies do business. Whether they are leading the way or simply trying to keep pace, companies need to address AI’s implications in all aspects of their operations. This applies not only to the customer-facing side of the business but also to human resources (HR).

While AI is still relatively new in terms of its business applications, it is already having profound impacts on the ways that many companies operate. Crucially, while AI presents immense opportunities, it also presents novel and complex legal risks. In the area of HR, companies cannot rely on AI exclusively when making employment-related decisions, as companies remain liable for these decisions—and as some AI applications have already shown risks for bias.

Using AI as a Tool for Human Resources Management

Artificial intelligence has a multitude of potential applications in the HR field. Today, companies are using AI to assist with the management of a variety of HR-related tasks, and some are doing so with immense potential for cost savings, employee retention, and improved efficiencies in nearly all aspects of their operations. Some of the ways companies are using AI in HR include:

  • Identifying job candidates and recruiting prospective employees
  • Monitoring and tracking employees’ performance, behavior, and engagement
  • Detecting inefficiencies and signs of employee burnout
  • Conducting employee training and onboarding
  • Managing repetitive HR tasks to allow HR professionals to focus on employee engagement and strategic operations

These are just examples, and as AI continues to pervade the workplace, companies will explore new and alternative ways to make use of the tools that are available (and that will become available in the future). In doing so, however, companies must ensure that they are giving due consideration to the legal implications involved—and they must address these implications proactively in order to manage their risk effectively.

Addressing the Risks of Using AI in Human Resources

We help companies manage all AI-related risks in human resources. This includes everything from evaluating the risks of utilizing AI in various HR applications to developing internal policies and procedures and from negotiating with AI application vendors to managing disputes that arise out of companies’ use of AI. Artificial intelligence is a new frontier, and the risks and governing principles are not yet well defined. But this does not mean that companies can simply move forward. To mitigate their risk—both now and in the future—companies must take an informed approach to implement AI in HR, and they must address AI’s potential biases and other legal implications head-on.

Managing Employees’ Use of Artificial Intelligence

Another key HR-related issue that companies will need to address is how to effectively manage their employees’ use of AI in the workplace. Whether authorized or not, employees will almost certainly use AI to make their jobs easier—whether in the office or while working remotely. This presents risks as well, and companies will need to proactively manage these risks regardless of whether they choose to adopt AI for HR or other business purposes.

Contact our firm today for help with your AI Legal matters.