Addressing AI Risks in the Workplace: Workers and Algorithms

On 3 June 2024, the European Parliamentary Research Service published a briefing detailing the impact of algorithms and AI in the workplace. The document highlights the dual nature of AI technologies, which can drive societal progress while raising significant ethical concerns. Current labour laws, established before the advent of AI, struggle to provide adequate regulatory frameworks for these technologies.

Algorithmic Management (AM)

• Definition: AM involves the use of algorithms to manage tasks traditionally performed by human managers.
• Benefits: Optimization of operations, increased productivity, data-driven insights.
• Risks: Job displacement, alteration of company hierarchies, worker surveillance, increased workload and stress.
• Prevalence: Widely adopted in logistics, manufacturing, and services sectors.

Data Concerns

• Data Collection: AI systems collect and process large amounts of data, raising privacy and accuracy issues.
• Decision-Making: The opacity of data-driven decisions complicates accountability.
• Bias: Machine learning techniques can replicate biases from training data, impacting fairness in the workplace.

EU Legal Framework

• GDPR: Sets standards for data protection, ensuring transparency and fairness in AI data usage.
• AI Act: Classifies AI systems by risk, imposes requirements for high-risk systems, including those used in employment.
• Platform Workers Directive: Introduces specific rights related to algorithmic management, limited to digital platform workers.

European Parliament’s Positions

• Ethical AI Deployment: Emphasizes ethical principles and full human oversight for high-risk AI applications in employment.
• AI Regulation Advocacy: Calls for robust AI regulation to mitigate power imbalances and enhance worker protections.

Collective Bargaining

• Human in Control: Advocates for the ‘human in control’ principle, transparency, and effective oversight of AI systems.
• Trade Union Negotiations: Successfully negotiated AI-related terms in various countries, ensuring consideration of worker interests in AI deployment.

Looking Ahead

• Future EU Action: Potential for enhanced AI governance in the workplace through more explicit guidance on worker safety and consultation.
• GDPR Provisions: Employee data protection provisions offer avenues for improvement.
• AI Act Limitations: Current limitations suggest a need for additional worker-specific standards.
• AM Practice Spread: Rapid spread raises questions about extending protections to all workers subject to algorithmic management.

Overall, while the EU has made strides in regulating AI, significant challenges remain in ensuring that the benefits of AI in the workplace are shared equitably among employers and workers.

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