Artificial Intelligence (AI) in the Workplace: Policy Considerations and Best Practices

by James W. Ward, J.D.; Employment Law Subject Matter Expert/Legal Writer and Editor, CalChamber

Artificial intelligence (AI) systems are receiving a lot of attention these days — and for good reasons. These tools are intuitive, can help increase productivity and efficiency, and even facilitate creativity and innovation. With their ease of use and benefits for businesses, it’s not surprising that employers are increasingly incorporating various AI systems — including generative AI tools, automated decision systems, predictive tools and others — in the workplace.

While using AI applications has significant upside potential, certain uses, particularly when not subject to appropriate oversight and safeguards, may present risks to companies such as legal compliance issues, use or reliance on inaccurate outputs, potential biases, unethical use, and disclosure of the company’s confidential or sensitive information, trade secrets or intellectual property.

As AI technology rapidly develops and is widely adopted in workplaces, it’s important for employers to understand laws and regulations that may apply to AI tools, audit how they use these tools, assess potential risks and then adopt AI use policies that provide clear guidelines and rules for using AI tools in the workplace while mitigating the potential risks that may arise when the tools are misused.