TECHNOLOGY
Further, it’s apparent that if payroll systems integrate AI into their operational functions, it means AI will be processing a large volume of workers’ personal data. This, of course, runs the risk of a data breach, as personal information may be released by an untrusted AI platform. We therefore encourage payroll providers to use only reputable AI services, with thorough
data protection policies to safeguard workers’ personal information. Finally, to ensure employers comply with their obligations under the Equality Act 2010, payroll teams must ensure AI doesn’t discriminate against workers based on protected characteristics. If the data used to train AI models is biased, it could result in discriminatory pay practices. For instance, if
historical data reflects gender pay gaps among the workforce, AI could perpetuate these biases. This may give rise to discrimination claims from workers on the grounds of sex, as well as more disclosures made under Section 77 of the Equality Act. Payroll teams using AI should be alert to this issue and ensure all information which is input into AI systems is accurate and complies with equality legislation. n
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| Professional in Payroll, Pensions and Reward |
Issue 109 | April 2025
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