AI’s rapid ascent to the top of the technology agenda has disrupted businesses in multiple ways, and the data privacy risk posed by AI is probably the most challenging one. Only a joined-up approach from HR and Legal departments can tackle this challenge.
Generative AI arrived seemingly out of the blue with the launch of ChatGPT in November 2022, allowing millions of users to create new content, code, and undertake other tasks effortlessly – although not always accurately. By 2024, according to recent research from Deloitte, around 7 million people claimed they were using AI for work, almost double the previous year. Clearly, AI is already making a huge impact on how we work.
However, it also raises questions – the one most often asked being: is the output accurate or is it a ‘hallucination’? This is undoubtedly hugely significant, but there are also substantial challenges when it comes to HR and privacy.
Simply put, organisations may not necessarily be aware that when data, including personal or commercial information, is input into these systems they might be introducing additional risks. Let’s look at two of the most popular use cases for AI: automated note taking applications and productivity/sales analysis tools, each of which has implications for HR.
The virtual note taking assistant
On the face of it, this application seems pretty innocent – a basic real-time transcription service that can take notes at meetings and on calls. And, for the most part, that is entirely true – but what happens when it is used to document an HR meeting discussing staff performance? Who has access to those notes, and where are they stored? Does the output feed back into the AI’s knowledge pool? Might the content be used to train other AI models and thus become accessible to others?
HR teams need to implement guardrails and policies to prevent unauthorised access to such data. Start with a discussion about data privacy law with the Legal department and share current use cases across the business so you can build an effective risk mitigation strategy. Then, clearly communicate how AI tools are used within the organisation to ensure employees understand the extent and limitations of AI usage.
AI and productivity/analytics tools
AI and productivity/analytics tools can help employees improve performance dramatically by automating much of the mundane and repetitive tasks we all face on a daily basis. This frees them to focus on more fulfilling and strategic actions, enabling them to reach their full potential. It is little wonder then that HR teams welcome AI tools that lead to a happier, more productive workforce.
Again, though, there are concerns here around privacy and who can access the personal performance data – who is using which tools for what tasks and what is the output? There is also a risk that these tools could be used in punitive and controlling ways, leading in extremes to the potential bullying and harassment of employees. Therefore, from a risk management perspective, HR managers must assume that these tools can act as both force multipliers and a source of potential malicious behaviour.
What about the employees?
In the feverish rush to deploy AI across businesses, even where use cases remain unproven, few organisations pause to ask: what do our employees think and how will it impact them? For example, when considering remote or hybrid workers, could AI be deployed to measure their comparative performance? Many companies find it challenging to assess the productivity of remote workers so AI might very well seem to be a silver bullet, but the rights of the employee must be taken into account.
The simple fact is that employees will rightfully be sensitive to how AI-enabled tools might be used so it is down to the HR team to ensure these tools do not overstep privacy boundaries. To do so, HR must work in concert with Legal to establish where these boundaries lie within local law. AI must therefore be introduced in a managed way, focusing on communicating benefits, otherwise internal adoption might be slower than anticipated.
AI and day-one rights
In the UK, all employees are entitled to certain rights from the first day on the job, including unfair dismissal protection, sick pay, and flexible working conditions. Dismissal is the grey area where AI could have a major impact, helping companies document employee performance even more thoroughly so that employees can quickly progress, receive support where necessary, and, if there are persistent issues, consider disciplinary actions and, ultimately, dismissal.
What next?
AI might present some considerable risks but it also offers enormous opportunities for higher performance and happier employees. It will help HR teams lead from the front and embrace the next wave of AI technology in tandem with the legal department so the deployment is measured and in line with privacy legislation. Thus, you can be sure data privacy is not exposed, GDPR regulations are not broken, and content is not processed outside the UK or EU without proper safeguards.
At the same time, it is important to remember that AI tools have been designed not to replace employees or HR professionals, but to augment their performance. The human emphasis on people, communication and collaboration remains as important as ever. By integrating continuous education and training for all employees, HR included, they can navigate AI adoption effectively and improve productivity and satisfaction all round.
Lindsay joined Six Degrees Group in 2018 as Head of Reward and People Operations. Prior to his appointment as CPO in May 2022, he served as Executive Operations Director where, alongside the leadership team, he worked to define and implement Group strategy.
Lindsay has over 20 years’ experience in HR. Prior to Six Degrees, he worked in a series of senior HR roles covering the UK and Europe, North America and Asia-Pacific. He has a varied background in organisations spanning the public, not-for-profit, and private sectors, including PE-backed and listed businesses.