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Friday, October 2, 2026

AI in the employment lifecycle: what pro-innovation regulation means for employers - Lexology

The UK government's policy paper on AI governance and regulation has significant implications for the workplace

The Department for Digital, Culture, Media and Sport's recently published policy paper, "AI Governance and Regulation: Policy Statement", sets out the UK government's proposed pro-innovation approach to regulate artificial intelligence (AI) that will have significant implications on AI tools and their use by employers.

Automation by employers

Employers increasingly use AI tools to automate various aspects of the employment lifecycle thanks to the increased efficiency and, in turn, time and cost savings that they offer. Examples of how these tools are applied can be found in:

  • Recruitment and onboarding, where they are used to automatically sort through CVs and application forms, analyse tone of voice and facial expressions during video interviews, and screen candidates using online tests.
  • Employee reviews, where they can be used to determine whether people will hit targets through automatic categorisation of data and the finding of correlations between data sets. Performance appraisals more generally have been undertaken using AI algorithms that carry out automated reviews of completed work against a database of satisfactory work.

Discrimination and bias

Despite the benefits, these uses of AI come with risks. These include the potential use of biased data, which the Equality and Human Rights Commission covered in its recent guidance on the use of AI in public...



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