Artificial Intelligence (AI) has been around for a long time. Still, in the context of generative AI, it is a relatively new concept rapidly revolutionising the workplace and HR practices. However, its speed to market means many companies have yet to put policies in place.

There’s been much debate around whether it should be legal to use at all. Some countries have already outlawed certain forms of AI, including Italy, which banned ChatGPT after a suspected breach of privacy regulations. For EU countries, the European AI Act will restrict the use of AI in critical infrastructure, education, law enforcement and the judicial system. In the UK, the government plans to review regulations for different sectors. It outlines critical principles for businesses to follow when using AI in their products, including safety, transparency, fairness, accountability and contestability.

There have also been high-profile cases of AI misuse. In the US in May this year, staff at Samsung accidentally leaked sensitive data. This led Samsung to ban employees from using ChatGPT, and the firm is now developing its intelligence tools to use internally.

What firms need to think about

It is advisable for companies to have policies in place for AI use to protect staff and the business. Here are five key considerations:

1. Privacy and data protection – privacy experts are sceptical of technologies that ‘scrape’ wide ranges of data sets, believing they may inadvertently collect, process or share sensitive information. The use of AI in facial recognition and other profiling tools only adds to their anxiety, as does the growing threat of data breaches and ransomware. How can you best ensure privacy in your organisation?
2. IP and confidentiality – countries are increasingly divergent on data regulation but share a willingness to fine businesses that fail to play fair. Can your organisation account for how, why, and where the data it uses for AI is sourced?
3. Discrimination and bias – how is the AI trained? Does it guide you to use it in a certain way? Could it be at risk of inherent bias? Many academics have concerns about discrimination and gender or ethnicity ‘bias’ in AI – an obvious concern for complying with employment and equality laws. Algorithms could be said to reinforce stereotypes; this needs to be reviewed before being incorporated into recruiting for talent.
4. Regulation – ignorance will not be an acceptable defence for not being prepared. Reputational risk must be considered in tandem with compliance. Businesses are responsible for remaining compliant and up to date with any future AI regulations, no matter how fast regulation changes. AI employs more than 50,000 people in the UK and contributes £3.7bn to our economy. The UK will host the first major global summit on AI safety this autumn and, as a world leader in technology and innovation, will be expected to set the pace on ethics and regulation, and owners and managers will be keen to learn the outcomes to incorporate into their practice.
5. Human interaction – HR professionals must balance AI with real-life knowledge, skills and experience. The AI is there to enhance working life, not to remove the employee. People managers should use AI to help with administrative jobs and the additional free time for more face-to-face and personal interactions.

Moving forward with AI

As we continue to learn from using AI in the workplace, we must keep abreast of regulation and guidance as it’s issued over the next few weeks and months and note how it differs from country to country. We must view new regulations as a help, not a hindrance.

HR managers and business owners need to ensure AI is implemented effectively and ethically to enhance our working lives and help create a more positive employee experience.

AI isn’t the enemy. It’s a new technology; as with anything new, the only way to improve it is for people to use it and understand where improvements can be made. However, it also requires moral judgements – and it’s up to all of us, as business leaders, to make the right call.

Zain Ali is an intellectual property lawyer and CEO of Centuro Global.