A big regulatory rethink will be needed in an AI-influenced world of work

New tools need new rules. That’s probably about the simplest way to explain how experts in the HR and recruitment spaces will need to approach revision of labour codes and employment laws in the next few years. This is because advanced technologies have gone so far in reshaping how businesses manage work processes and who does what work (humans or machines) and in what conditions that we need to address worker protections in a different, more thoughtful manner.

In looking at the recent report Agile talent in the age of AI compiled by the World Employment Confederation (WEC), with contributions by industry experts like those from our teams at Gi Group Holding, there are a number of trends highlighted that will require adaptation of rules in the workplace (on-site, remote or hybrid). Indeed, the benefits that AI-influenced tools afford (like agility in skills access for job performance, flexibility in work execution or task delivery, and new approaches to talent planning strategies) can all do wonders to make businesses more efficient and competitive. The rub though lies in how to set out guidelines and protections for worker mental, physical and social safety so that all these advances have true meaning in the work-life stability equation. Reading through the document I found three areas for potential regulatory overhauls that I wanted to highlight.

Regulations/quality controls for agency workers

Looking at WEC survey findings in the report, there is mention that many CEOs (88%) plan to increase their use of agency workers to get better access to the agility they need from their employee teams. Indeed, agency worker set-ups can often deliver on the promise for agile hiring as these businesses can supply talent (flexible, contingent workers) per a specific terms of reference and ensure businesses have access to the specific skills they need. Also in the agency worker supply framework, there is higher likelihood that employee talent can be hired to meet multiple workload needs; i.e., address one set of tasks on Monday, while moving to others two days later. But then, for purposes of reputation management and general worker protection, corporations seeking agency-sourced employees will need to pay greater attention to quality controls for agency employee protections. This is something the European Commission and members states like Germany are looking into closely because they want to ensure quality of work conditions and that worker rights are generally respected.

Greater protections for agile, gig workers

Within the context of flexible work in the age of "work from anywhere" or hybrid employment structures, there is also the need to provide basic social and pension benefits outside the standard employer-employee contracted work paradigm. With companies wanting more agile employee sourcing options, workers (in many cases serving as contractors in "gig" situations) as service suppliers will need government support in the form of modified pension arrangements, access to healthcare insurance coverage, etc. traditionally built into open-ended contractual employment agreements. Businesses, thanks to AI and other techs’ influence on the execution of automatable work processes, will increasingly be able to hire with a skills-guided philosophy and using a "labour as a service" mindset. But company benefits for cost rationalisation cannot come at the expense of liveable earnings and social welfare protections.

Codes for ethical use of AI

The final big challenge in our AI-reshaped work environment will be to use AI and other technologies in responsible ways. There are so many benefits that AI affords, but we also need to be mindful of when and why it might exacerbate specific workplace process biases. With the right approach corporate HR teams can monitor and put in place strong guidance for how to use AI responsibly. WEC guidelines (the Code of Ethical Principles in the Use of AI) are a good source of inspiration. Mindfulness of rules like focusing on human-centric design can ensure our machine and software partners deliver needed services with a strong focus on people impact. Also protections on issues such as fairness, non-discrimination, diversity, inclusiveness and privacy should be part of individual company regulations and codes of practice to ensure that AI benefits can be derived justly for employers and employees alike.

Thanks to new technology, we have so many opportunities before us. We just have to leverage all these benefits responsibly with a regulatory framework that supports economic growth, while protecting those who create it.