AI ethics in the workplace: Using AI responsibly

While the implementation of AI in the workplace can bring about many benefits, it also gives rise to several ethical concerns that organizations must address to ensure the proper use of AI technology.

Employee rights refer to certain legal and ethical entitlements and protections that are offered to individuals working for an employer. Employee rights are offered under labor laws and regulations that vary by country, jurisdiction, and status of employment. These rights are the backbone of building equitable workplaces and are designed to ensure fair treatment, respect, and safe working conditions for employees to ensure their well-being.

Employee rights cover a wide range of areas, like workplace safety, which includes the physical as well as psychological safety of employees; fair compensation, which includes transparent salary structures, equal pay for equal work, and advancement opportunities; and non-discrimination, for ensuring that all employees are treated fairly, without any bias. These AI ethics and principles are crucial for ensuring a balance between the implementation of AI in maintaining employee rights.

The workplace of today is in the midst of an AI revolution, as AI technology is increasingly being used across a range of operations and departments in organizations. According to a survey by McKinsey, the number of organizations using Generative AI in at least one business function rose from 56% in 2021 to 72% at the start of 2024. AI can streamline activities and processes to help boost overall efficiency, reduce the risk of human errors, improve decision-making, and automate routine tasks to foster innovation and creativity. Understanding the use of AI in different business processes can help improve understanding of potential concerns that may arise regarding AI ethics.

· Human resources

In the HR department, AI can help streamline several processes. It can be used to simplify hiring by managing resume screening, interview scheduling, and applicant communications. AI can also be used for internal communications, onboarding and training, spotting indicators of employees planning to quit, suggesting upskilling and education opportunities for employees, and summarizing misconduct cases for reporting.

· Sales and marketing

AI can make data analytics quicker, simpler, and more accurate for sales and marketing teams. Instead of employees having to sift through huge datasets, AI-powered tools can be used to answer basic questions about the data and provide actionable insights. AI can also be used to spot patterns or trends in website traffic and marketing efforts to boost performance and sales.

· Customer service

AI-powered tools and technologies can be used by customer service departments to provide consistent communication channels for customers, which can be accessed 24X7. AI can also be used to handle simple customer requests and issues with ‘yes’ or ‘no’ questions or FAQs, freeing up employees so they can focus on the more complex cases. Other uses of AI in customer service include creating chatbots and messaging app bots, conversation analysis for employee training, automated inquiry triage, and website or in-app customer activity analysis.

· Administrative tasks

Repetitive, tedious administrative tasks can be completed by AI at the workplace. Some use cases include planning meetings for large groups of employees by analyzing each employee’s schedule to find a date and time that works for everyone, taking meeting notes, and more.

· Fraud detection

AI is dynamic and can analyze historical data to learn and modify its rules to prevent fraud threats. AI can also work continuously to reduce instances of false positives, where genuine users may get blocked. AI can be trained to identify and spot indicators of financial fraud, theft, and cybersecurity risks to the organization.

· Labor laws

Ethical concerns about AI also include potential conflicts with labor laws. For example, if an organization relies solely on AI for its performance management or termination decisions, it leaves itself open to unlawful termination or unfair dismissal claims, where employees may claim that AI made errors or did not consider the full situation.

· Data security and employee privacy

AI can also be used to track the productivity of employees and performance management. While it may be argued that this helps refocus the attention of employees, identify underperformers who need support, and prevent time wastage, it is also possible that AI may collect sensitive personal data along with work-related information and potentially lead to a breach of privacy.

· Job security

One of the biggest concerns of AI and ethics is the risk of AI taking the jobs of employees. The AI Anxiety in Business survey by Ernst and Young found that 65% of surveyed workers in the USA were anxious that AI might replace them. Many employees also have concerns about the impact of AI on reasonable working hours, fair wages, and job stability.

• Non-discrimination and fairness: The design and implementation of AI systems must ensure that all employees are treated fairly, regardless of their age, race, gender, or other protected characteristics.
• Transparency: It is important that organizations strive for transparency in their use of AI, communicating to employees where and how AI is being used in business processes.
• Data protection and privacy: Under AI ethics and principles, it is crucial to respect employee privacy. This involves ensuring that the collection, storage, and processing of training data is in compliance with data protection regulations.
• Oversight and accountability: Human oversight over AI is crucial. That is why it is important that critical final decisions are made by humans and that there are accountability structures in place for all AI-assisted decisions.
• Informed participation: Employees must be informed of where AI is being used and how it will affect them. Wherever appropriate, employees should be able to consent or opt out.
• Robust security: AI systems must be secure and should be able to prevent manipulation and potential threats. This involves implementing robust cybersecurity features and ensuring stable AI models that produce accurate output regardless of the situation.
• Monitoring and adjustments: Proper AI ethics require constant assessment and refinement of AI performance and its impact on employees.
• Accessibility: AI systems must be designed to be inclusive. They should be accessible to all employees and should benefit them. The interfaces and AI-generated content should be usable by all employees, including people with different needs or abilities.
• Cultural sensitivity: AI systems must be designed with global awareness and cultural sensitivity in mind, especially in multi-national organizations.
• Professional development: Balancing AI and ethics requires AI systems to be committed to employee development. It is important to ensure that AI augments the capabilities of employees and doesn’t replace them.

· Track performance and ensure legal compliance

Organizations must comply with relevant laws to regulate the use of AI in the workplace. Failure to comply may not only be an infringement of AI ethics but also of employee rights and can lead to penalties for the organization. Different laws to regulate AI and ethics are being considered across the world, and the landscape is evolving rapidly. It is paramount for organizations to stay up to date with the legal developments in the space that can affect their business and adapt AI implementation and policies accordingly.

· Follow a considerate approach to AI and ethics

When using AI in the workplace, it is crucial to recognize its limitations. AI can reinforce bias with improper training data and even make up information in cases where it does not know the answer. This is a phenomenon known as ‘hallucinating’. Additionally, AI also lacks human traits, like creativity, nuanced judgment, and empathy, which are essential for employee management. That is why it is important to use safeguards with AI to protect employee rights. For example, discrimination in AI screening can be mitigated by using relevant tools, like skills tests, that are designed to reduce bias in hiring. Additionally, human oversight and input should always be used in AI-driven decision-making.

· Establish clear AI ethics and policies

Clear AI ethics and policies provide organizations with a blueprint for the ethical use of AI. Creating an AI bill of rights that details the guiding principles for AI usage in the organization is a good place to start. From this, new AI-related policies can be created, and existing policies can be modified. These policies should cover AI governance, which includes principles and guidelines for adopting and managing AI; ethical use of AI, which covers transparency, fairness, and accountability; data security and privacy, which covers data usage, storing, and sharing of employee data collected by AI; and processes for dispute resolution, outlining how the use of AI or AI-driven decisions can be contested by employees.

· Honest communication

Several places already have laws that require organizations to notify their employees and candidates of AI usage. However, even if there are no legal obligations, AI ethics dictate that organizations should be transparent about AI usage and its impact on employees. Not doing so undermines trust, which directly affects performance. It is also important to ensure that all AI policies of the organization are available to all employees, which can be done by adding the policies to the organization’s HRMS, policy booklet, intranet, and onboarding and training materials.

· Appoint overseers

Appoint an employee or team dedicated to overseeing AI performance. This can help organizations reduce the risk of AI violating employee rights. The appointed individual or team can be in charge of when and how AI should be used in the organization, assess how AI can potentially impact employee rights, devise measures that can safeguard employee rights, and monitor and review AI implementation and use in the organization. The findings and reports of the overseers can also be made available for employee access, which will help maintain trust and transparency.

· Provide employee training

It is important for organizations to provide employees with AI-related upskilling and training. This will help employees get a clear understanding of how AI technology is being used at the organization, how it can be used for the benefit of the employees and the organization, and how employees can maximize the use and benefits of AI. An explanation of the exact benefits and limitations of AI also reassures employees of job security. Furthermore, AI-related training programs can also help employees understand proper AI ethics and usage.

· Track the use of AI

Organizations should conduct audits on a regular basis to review how AI is impacting employees and the workplace. The audits should also review comprehensive HR data, including performance evaluations, promotion rates, diversity metrics, and hiring patterns, to spot any instances of bias or discrimination. The insights gained through internal audits can prove to be invaluable for objectivity in AI implementation.

It is paramount to safeguard employee rights while effectively implementing AI. There are several strategies and measures that organizations can implement to ensure this. Adopting an AI bill of rights and ensuring AI usage transparency are some steps that can help organizations follow proper AI ethics in this regard. Consider forming a diverse, cross-functional team to oversee AI performance and initiatives, establish ethical guidelines, and address concerns. Representatives from different business units in the organization, including human resources and IT, can help ensure a comprehensive AI governance approach. Organizations should also create a detailed plan for addressing potential AI failures or breaches, with detailed steps to be taken for incident investigation, damage mitigation, and corrective action implementation. The plan should also be tested and modified regularly for effectiveness.

Like most other technological advancements, artificial intelligence is also a tool. On its own, AI is neither harmful nor beneficial. The use of AI in the workplace and its ethical implications depend entirely on how the organization uses the technology. To ensure proper AI ethics and the responsible use of the technology, decision-makers should prioritize non-discrimination, security, privacy, and human accountability. When implemented and used correctly, AI can transform the workplace for the better.