AI offers many opportunities to businesses, though there are specific risks to be managed in relation to its use in the workplace
The Italian Council of Ministers, on 23 April, approved a bill to introduce provisions on AI, in line with the EU AI Act (European regulation on artificial intelligence approved on 13 March by the European Parliament). Two articles of the bill are dedicated to the use of artificial intelligence in labour matters (articles 10 and 11).
Labour provisions
Article 10 clarifies that AI can be used to improve working conditions, protect the psycho-physical integrity of workers, increase the quality of work performance and the productivity of people, in accordance with EU law.
It specifies that the use of AI in the work environment must be
safe, reliable, transparent and shall not violate human dignity or
infringe the confidentiality of personal data. The employer or
principal is obliged to inform the employee about the use of
AI.
Finally, the principle of fairness in the management of the
employment relationship is reaffirmed, stating that the use of AI
systems may under no circumstances discriminate against
workers.
Article 11 establishes, at the Ministry of Labour, an
observatory on the adoption of artificial intelligence systems in
the world of work, in order to maximise the benefits and contain
the risks arising from the use of AI systems in the workplace, as
well as to promote the training of workers and employers in
AI.
These provisions outline the regulatory criteria that should guide
the use of AI in the world of work. But what exactly is being
referred to? Focusing on the concrete application of AI in
companies and the related challenges and ethical issues involved,
this Insight also provides practical tips for interpreting the
content of the bill and implementing it within companies.
AI applications in the world of work
In the world of work, AI can have multiple applications. These include recruiting, monitoring work performance, simplifying certain activities, and creating new roles.
- Recruiting: AI can analyse the CVs of thousands of candidates in a few moments. Algorithms can identify the most suitable candidates based on keywords and specific skills required.
- Work performance monitoring: AI platforms can monitor employee performance, for example by analysing productivity data, and suggesting improvements. AI can also help companies monitoring compliance with labour regulations (such as in relation to hours worked, overtime, or holidays), as well as reporting violations of these regulations in real time.
- Simplification of certain tasks: AI can analyse huge amounts of data in the blink of an eye and make immediate decisions, absorbing the repetitive tasks performed by the worker by automating part of his work.
- Creation of new roles: Some examples of
figures that will be increasingly in demand in the coming years are
the data analyst, the cybersecurity analyst, the specialist in AI
ethics or digital transformation, or the HR applied to AI.
The use of AI offers numerous advantages for employers: it improves organisational efficiency, reduces costs and minimises human error. It also provides valuable data for making informed decisions in the shortest possible time.
Employees also benefit from AI, as they can receive immediate feedback on their applications, and simplify some of their work tasks, being relieved of repetitive, or even dangerous, tasks in order to concentrate on more value-added activities.
Challenges and ethical issues
The use of AI, however, also presents challenges. These include:
- IT security and privacy: For example, the unlawful processing of personal data and violation of the GDPR, or disclosure of confidential employee information, but also of business secrets and know-how.
- Control of workers: AI tools can continuously monitor workers' activities, which may lead to violations of Article 4 of Law 300/1970 on remote control.
- Unconscious biases: AI tools are not programmed to detect forms of discrimination or cognitive biases, but are based on historical data, thus risking to promote inequalities and indirect discrimination.
- Transparency of algorithms: decisions made by AI can be difficult for workers to understand (and possibly challenge).
- Accuracy of output: AI responses are not infallible, especially when it comes to law. Therefore, if we would entrust AI alone with the responsibility of producing output without human control, there would be a risk of inaccurate, fallacious or misleading results, with significant reputational damage for employers in the event of business crises.
- Dispersion of skills: entrusting only the AI with the responsibility of producing all kinds of output without human control could result in some human skills, no longer being exercised and trained, being lost over time.
Company supervision?
As controversial as the use of AI may seem, it is no longer a
question of accepting or opposing change. Change is already taking
place and the best option is to learn about and manage AI in order
to use it as an ally, in compliance with the AI Act.
In order to limit the risks, corporate supervision of the
use of AI is essential. For instance:
- implementing regulations for IT control and approval when acquiring new AI technologies;
- drafting policies to regulate the use of AI in the company, which can oversee the compliance of the use of such tools with current labour legislation;
- verifying that the data used to "train" the algorithms are free of unconscious bias, including by implementing regular audits to identify and amend any discriminatory mechanisms;
- making sure that the algorithms are as transparent and explainable as possible, in case of possible objections from employees, and identifying clear ways to communicate the use of AI both inside and outside the company;
- identifying one or more people within the company to take responsibility for the outputs generated by AI;
- analysing, from a labour law point of view, the new roles connected with AI that will arise in companies, in order to identify their correct legal and contractual framework;
- providing training courses to be offered to employees to ensure
the effective use of AI tools implemented in the company, as well
as to accompany them in the acquisition of new skills and in the
technology transition process.
Osborne Clarke comment
The ultimate challenge of AI will not be the technology, but
rather the ability of organisations to intercept, metabolise and
wisely implement the potential of new technologies.
In this, it will be crucial to create synergies between all actors
involved: legislators, companies, workers and legal
advisors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.