Should you be using Artificial Intelligence (AI) in the workplace?

According to a recent survey which was commissioned by ACAS, more than a third of employers think that AI will increase productivity. 

In addition to the above, the survey also found that:-

• 12% thought AI would give a competitive edge
• 11% thought it would increase knowledge
• 11% thought more work would be done with fewer staff
• 11% thought there would be no benefit”

There are employment law issues that need to be considered by businesses when using AI as there are legal risks associated with using such technology. These risks depend on what a business wants to use AI for and there are different types.  Generative artificial intelligence (GenAI)  can be used for creating new content. This could be for drafting internal memorandums, producing marketing material, research and idea generation.  

ChatGBT is an example which is well known but there are many other AI applications.  

An employer should certainly be considering confidentiality, data protection, intellectual property rights and ensuring such GenAI use is secure and outputs are reviewed and limitations understood. 

AI can also be used for tasks such as screening and hiring, tracking workers and answering employee questions through Chatbots. Relying on AI to make decisions regarding recruitment could give effect to discriminatory outcomes as AI software is only as good as the information provided to them. In 2018, it was reported that Amazon had stopped using an algorithmic recruitment tool as it tended to favour male applicants. 

A report was published in February 2025 by the Institute for Public Policy Research which found that 70% of the tasks associated with knowledge roles could be significantly transformed or replaced by AI. AI is clearly here to stay and will no doubt be impacting businesses more and more in the future. 

You should take specific legal advice on using AI and the risks involved in the workplace but here a few things to consider:- 

1. Carry out a Risk Assessment 

If you are already using or considering using AI, a risk assessment should form part of your process to consider the risks associated with its use including bias, data protection, intellectual property rights and licensing and privacy risks. 

For data protection risks, the ICO has published an AI and data protection toolkit that includes a risk assessment template focusing on compliance (see below in useful links). 

2. Permitted use and Transparency

At a UK level, transparency is a key concept to consider and this will depend on the use. An employer will need to consider what permitted uses they will allow and if artificial intelligence is used to generate work how this will be acknowledged. 

3. Training 

Safe and effective use of GenAI will need training. You should consider if this should be mandatory and given that this area is rapidly changing, how will GenAI use be managed. 

4. Workplace Policies

A Generative AI in the workplace policy is strongly advised where an employer wants to allow its workforce to access GenAI for business use. Any GenAI policy will also need to be read in conjunction with other policies such as a Diversity, Equity and Inclusion Policy, an IT and Communications Systems Policy as well as a Data Protection Policy. 

Legislation

At the moment there are no specific proposals for legislation for GenAI and this is currently intended to be managed through regulatory guidance. However the use of AI poses various potential legal risks which should be carefully considered when using such technology in the workplace. 

Some Useful Links:-

• ACAS Survey One third of employers think AI will increase productivity | Acas
• AI and data protection risk toolkit AI and data protection risk toolkit | ICO

The contents of this article is a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.