The pros and cons of AI in the workplace

Over the past couple of years, working life has undergone a significant overhaul, with Artificial Intelligence (AI) rapidly becoming an integral part of it. Some companies welcome the resource savings that automation can bring, while others are still cautiously waiting to see what the future holds. Here, our employment law experts identify some key areas and examine the pros and cons of AI integration in the workplace.

AI and CVs

AI can play a role at various stages of recruitment, benefiting both candidates and businesses. Candidates may use AI to enhance their CVs and present themselves in the best possible light, while companies increasingly rely on automated, AI-driven processes for candidate selection—and more recently, even during interviews.

It has become common to use AI to produce a comprehensive CV that matches a job description in minutes, potentially saving candidates hours of work. However, from a recruiter’s perspective, the CV often serves as a valuable first impression. An AI-generated CV may hide skill gaps and lack individuality or ‘character.’ As a result, businesses could soon face a stack of CVs that all look the same.

Recruiters have the option to screen applications for AI-generated content, and various tools exist for this purpose. However, extreme caution is required to avoid breaching data protection laws. Any such practices must be clearly stated in the recruiter’s Privacy Policy, and candidates should have the right to review and challenge decisions based on these tools. In most cases, this will require a Data Protection Impact Assessment.

Automated decision-making processes also need careful consideration before implementation. There have been reports of established companies relying on AI-driven recruitment systems that inadvertently excluded CVs from certain demographics or genders due to insufficient checks on the algorithms used.

AI in interviews

Some of the issues mentioned above can be addressed during the interview process. Even when AI is used to generate ‘model’ answers that may not reflect a candidate’s true abilities, businesses that rely on direct interaction can benefit from observing how answers are delivered and asking follow-up questions for clarification.

However, vigilance is still required. There may be situations where interview questions need to be provided in advance—for example, to make reasonable adjustments for a job applicant. In such cases, employers should consider whether this would be a reasonable adjustment, such as when a candidate discloses that they are neurodiverse.

Additionally, AI is now entering the interview process itself, with providers offering AI-powered interview tools. While this may reduce costs, the value of real human interaction with candidates is arguably greater. We believe that in-person interviews will become increasingly important—especially if unfair dismissal becomes a day-one right.

AI and HR data analysis

Another area where companies are increasingly using AI is data analysis. While automated tools can assist with tasks such as employment monitoring, redundancy processes, disciplinary actions, or absence management, these areas carry significant risk if no human oversight is built into the monitoring or review process.

Effective people management is fundamentally about understanding individuals — a level of insight that develops over years and cannot be replicated by AI. Applying a ‘reasonable’ approach and exercising judgment based on individual circumstances is essential for fair decisions. AI solutions based purely on data screening cannot fully guarantee that sickness absence management won’t be discriminatory. Certain procedures will therefore require careful balancing of facts and context, assessed on a case-by-case basis.

Any automated decision should always be reviewed by a human to identify inadvertent biases or discriminatory outcomes that could breach the ‘protected characteristics’ under the Equality Act 2010, such as sex, age, race, or religion.

Automating data processing and analysis in HR practices can introduce hidden biases and lead to discriminatory results. In the worst cases, this could result in employment tribunal claims for discrimination, unfair dismissal due to a breach of mutual trust and confidence, harassment or bullying, and even violations of data protection and GDPR requirements.

AI used by employees

Employers should also have a policy on the use of AI by their employees, which if breached, would amount to a breach of the employees’ employment contract and could lead to disciplinary proceedings, to ensure that employees use AI within the confines and in accordance with the company’s values and do not breach confidentiality of clients/other employees.

This may be useful to limit liability for the company, in the event that an employee uses AI in the wrong way and without checking the result before it goes to a client or to an external party which could very easily lead to legal or criminal liability for the company.

A recent High Court case where contempt proceedings were considered against a lawyer who had cited ‘false’ legal authorities in a witness statement, showed how failing to check the results of AI generated work can lead to litigation. Employers in all industries,  should have an AI policy which safeguards against this kind of outcome.

What should employers do to balance the pros and cons of AI?

In summary and in answer to the question as to whether AI works in the workplace, the simple answer is, ‘it can….with caution’! We are not in a position to replace the invaluable thinking and judgment of HR managers and employment lawyers, with AI.

AI can be used to save time in simple automated tasks but must be used with caution and there should be human review as part of that process. Nothing can replace human judgment, the exercise of giving the benefit of a doubt and behaving ‘reasonably’. Many of the phases of an employment life cycle cannot be replaced by AI, either partly or completely.

If you’d like more detailed advice on any of the pros and cons of AI or the areas touched upon in this article, please get in touch.

Our Legal 500-rated employment law & business immigration team are experts in guiding businesses of all sizes and backgrounds through a range of issues that may arise. 

From employee relations and policy reviews, to organisational development, recruitment and staff training, we can also assist with both your organisation’s day-to-day and strategic HR needs through Willans’ HR Support.