TECHNOLOGY
Paul Chamberlain, partner and head of employment law, JMW Solicitors LLP, also looks at the introduction of artificial intelligence (AI), but considers the employment law implications for organisations looking to use the technology AI considerations for employers
T he House of Commons published a report on 11 August 2023 reviewing the relationship between AI and employment law. This follows on from a white paper published by the government back in March 2023 entitled, ‘ A pro-innovation approach to AI regulation’ (https://ow.ly/7qvP50QRgb3), which proposed a framework for non- statutory regulation of AI in the UK. As the technological landscape has continued to change over the last few years, the presence of AI tools has become increasingly used in the workplace. Where used appropriately,
AI tools can have significant benefits for employers and their organisations. They can contribute to increased efficiency and output, and can help to streamline processes which ultimately saves time and resources. The report from the House of Commons focusses on the use of AI within three broad areas of the workplace: l recruitment l line management l monitoring and surveillance. Outside of these main areas, payroll is another point of interest for companies aiming to use AI to increase effectiveness
and accuracy. Although outsourced payroll software systems have been used for many years, companies could lean towards bringing payroll functions in-house with the support of AI. The reliance on AI systems and biometric data compiled by other functions such as recruitment and line management may further affect the use of AI in payroll, and therefore it’s crucial to understand its overarching use across companies and the risks associated with it. Employee privacy To operate most effectively, AI systems require large amounts of data to impact algorithms. This is especially the case with payroll functions handling pay data for employees across the company. As such, employers will need to ensure any data collected and processed from employees must be done lawfully in accordance with General Data Protection Regulation rules, for specified and legitimate purposes. In addition to this, employers must ensure
“The House of Commons report highlights instances where the use of artificial intelligence within recruitment processes has led to unfair bias against certain groups, such as women, without objective justification”
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 54
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