Law Firms across the country are building up their AI legal teams and licking their proverbial chops at the legal opportunities coming with AI based business lawsuits! Its the wild west of both Artificial Intelligence and the legal system. Every CEO must have a plan or face the consequences down the line.

Lets not go all doom and gloom. It’s important to approach the topic of AI misuse in the workplace with caution. Framing it as “things employees are doing” may inadvertently shift blame and lead to unproductive finger-pointing. At this stage in AI growth we’re all learning what it can do, should do and perhaps most importantly should not do. One look at this image shows you what can go right with AI (the image) and wrong – the text.

Right or wrong, Ignoring AI use in the workplace is like putting your head in the sand. Your competitors and employees are using it daily – so accept that and understand what that means for your business going forward.

Let’s focus on unforeseen consequences of AI implementation that CEOs should be aware of and address proactively. Here are five areas where AI use in the workplace could lead to negative outcomes, along with actions CEOs can take to mitigate risks:

1. Unconscious Bias Amplification: AI algorithms trained on biased data can amplify existing prejudices in hiring, performance evaluations, and other sensitive areas.

• CEO Action: Implement rigorous data audits and bias detection tools to identify and mitigate bias in AI systems. Prioritize diverse data sets and develop fairness guidelines for algorithm development and deployment.

2. Algorithmic Espionage and Privacy Breaches: Unmonitored AI-powered surveillance tools used for employee monitoring can lead to privacy violations and erode trust.

• CEO Action: Establish clear policies on data collection, storage, and access. Prioritize transparency by informing employees about AI monitoring practices and provide opt-out options where appropriate. Implement robust cybersecurity measures to prevent data breaches.

3. Automation-Driven Dehumanization: Overreliance on AI for tasks like communication, performance management, or decision-making can create impersonal and dehumanizing experiences for employees.

• CEO Action: Promote a human-in-the-loop approach, where AI complements human judgment and facilitates communication, rather than replacing them. Prioritize upskilling and training programs to ensure employees adapt to changing roles alongside AI integration.

4. Algorithm-Induced Stress and Workload Creep: Improperly designed AI tools can increase workload and pressure on employees, leading to stress, burnout, and reduced productivity.

• CEO Action: Conduct user research and pilot tests to assess the impact of AI tools on employee workload and well-being. Implement safeguards like automated task scheduling and flexible work arrangements to prevent AI-induced stress.
• Before implementing any new tools (AI or any software) complete an audit to ensure the new AI software isn’t just replacing what is working already. Only bring in new AI that solves a problem, saves money or reduces the number of Apps / software licenses your CFO has to pay.

5. Lack of Accountability and Oversight: Unclear lines of responsibility and accountability for AI decisions can exacerbate existing power imbalances and create ethical dilemmas.

• CEO Action: Establish clear governance structures for AI development and deployment. Appoint responsible AI leads and implement ethical review processes to ensure responsible decision-making and fair outcomes.
• Put the CIO in charge of all new AI or hire an AI Seer that keeps track of all uses of AI in the company and ensures all employees are in AI legal compliance. This person also needs to review with CIO the current tech stack, current limitations and the current IT strategy.

Bonus Considerations:

Organizations over 250 Employees will need to appoint an AI Seer. This person will be tip of the spear for all AI related work. They will need to have the knowledge of a CIO with the business savvy of a CRO and legal chops to boot. They will be very expensive.

We’re living in the Wild West of AI right now and there is no lawyer or IT pro that can protect your organization from every AI related problem.

However, by proactively addressing these potential pitfalls, CEOs can foster a responsible and ethical AI environment that benefits both the company and its employees going forward. Remember, the key is to leverage AI’s potential while mitigating its risks to create a thriving workplace for everyone. Every business will be using AI in the very near future. Just like any business tool ever made the key is how and when to use the tool in a ethical and legally nuanced way.

AI is changing faster than the laws. CEO’s must look to mitigate future legal liability by addressing good use vs. bad use of AI in their organizations right now. Ignorance isn’t accepted in court.