The RMB Workplace & Employment Law Division explains how businesses can embrace artificial intelligence while managing the legal risks that come with its growing use in the workplace.
Artificial intelligence is no longer something businesses are planning for in the future - it’s already here.
Whether it’s drafting emails, preparing reports, taking meeting notes or screening job applicants, AI tools are becoming part of everyday workplace operations. For many businesses, the benefits are obvious: increased efficiency, reduced administrative burden and the ability to complete tasks more quickly than ever before.
However, as employers increasingly embrace AI, they should be aware that the technology does not replace their legal obligations. In fact, in some cases, it may create entirely new workplace risks.
One of the most common misconceptions is that if an AI system makes a recommendation or produces a piece of work, responsibility somehow shifts to the technology. It doesn’t. Employers remain responsible for decisions made within their business, regardless of whether AI was involved.
Take recruitment as an example. Many businesses are now using AI-powered tools to review applications and identify suitable candidates. While these systems can save considerable time, employers should be cautious about relying on them without human oversight. If an AI tool unintentionally disadvantages certain groups of applicants, businesses may find themselves exposed to discrimination or adverse action claims.
The same principle applies to employee management. AI-generated performance reviews, disciplinary documentation and workplace communications should never be accepted at face value. Employers should carefully review any AI-generated content before relying upon it in employment-related decisions.
There are also increasing concerns about privacy and confidentiality. Employees often use publicly available AI tools to assist with workplace tasks, sometimes without fully understanding where the information they input is being stored or how it may be used. Businesses should consider whether confidential client information, commercially sensitive material or employee data could be exposed through inappropriate use of AI platforms.
For this reason, employers should ensure their workplace policies keep pace with technological developments. Policies should clearly address the use of AI in the workplace, including expectations around confidentiality, accuracy, disclosure and appropriate use.
Importantly, AI is creating challenges for employees as well. Questions are increasingly arising around performance expectations, monitoring, surveillance and concerns that technology may replace certain roles altogether. Open communication and transparency can go a long way towards addressing these issues and maintaining trust within the workplace.
The legal landscape surrounding AI continues to evolve. While Australian employment laws have not yet caught up with every technological development, existing obligations relating to discrimination, privacy, workplace surveillance, adverse action and procedural fairness continue to apply.
Businesses that approach AI thoughtfully are likely to gain significant advantages. The key is to view AI as a tool to support human decision-making, rather than a substitute for it.
The future of work may be changing rapidly, but one thing remains the same: good employment practices, sound policies and informed decision-making will always be essential to managing workplace risk.
RMB Lawyers can assist our small business legal requirements. Your first step should be to contact our office to arrange a consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.