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25.07.2025
Why your organisation should have an AI policy
This week we’re looking at common risks of using AI day-to-day in the workplace.
SHARING CONFIDENTIAL INFORMATION
AI tools store the data inputted and share it with other users, effectively making it public. Employees may not realise this could lead to a serious data leak or breach of their contract.
❌ Revealing commercially sensitive or financial information
❌ Sharing private client data
SHARING PERSONAL DATA
Inputting personal data can instantly cause a GDPR breach, but there are also issues with how (not just where) the data is being used. GDPR liability falls directly on the employer.
❌ Not informing people their data would be used in this way
❌ Using data in a way that’s outside of the original permissions
ACCURACY
This is one of the biggest risks when it comes to AI. The source data is not always verified or accurate. AI can (and often does) make mistakes causing pitfalls for employers.
❌ Potential negligence claims on inaccuracies in client work
❌ Breach of contract for not using reasonable care and skill while working
HR SPECIFIC ISSUES
Using AI for HR tasks like performance reviews and promotions can also be problematic. GDPR states important decisions about people shouldn’t be made only by machines.
❌ Involves using sensitive personal data, for which extra safeguards are needed
❌ Can lead to career-impacting decisions for the employee
So now you know the risks, what can employers do?
✅ Make sure you have a detailed AI policy in place
✅ Clearly communicate that policy to all employees
✅ Provide training so risks can be clearly explained
✅ Control the use of AI by blocking specific platforms
✅ Maintain a human sanity-checking element in any decision-making process
We’ve created a ready-to-go AI policy that can be adapted to suit your organisational needs. It’s quick to implement and instantly protects your business from these risks.
Contact me for an informal chat to find out more.
Employment solicitor supporting businesses and individuals with tailored employment law advice and HR solutions.
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