The risks of AI are mounting – from privacy breaches and constructive dismissal claims to lawsuits
Employers are rushing to adopt artificial intelligence tools, but the legal and privacy risks are piling up faster than many realize. Howard Levitt, Senior Partner at Levitt LLP, says companies need to tread carefully before letting algorithms into the workplace.
This is highlighted by a recent report from Infosys, which found that 95% of C-suite and director-level executives had suffered from at least one type of problematic incident from their use of AI. The most-reported incidents were privacy violations and systemic failures, as cited by 33% of the respondents.
More than half of respondents (53%) reported the damage incurred from AI was reputational, while nearly half (46%) indicated it was legal, resulting in fines and settlements.
For Levitt, using AI to monitoring employee productivity, computer usage and output questions raise real questions about employee rights.
“The question is whether or not that’s so intrusive as to be a constructive dismissal,” he explains.
Traditionally, workers could expect some privacy even under in-person supervision. An AI program logging every keystroke or mouse movement could be interpreted as a digital equivalent of a supervisor standing permanently over someone’s shoulder.
“An employee might argue that that fundamentally violates your basic privacy, and that could lead to an employee resigning and claiming constructive dismissal,” he...
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