As the adoption of AI continues to accelerate across all industries, its implications for HR and employment law are only just beginning to emerge in legal cases.
One recent headline-making case involved a serial job applicant using AI to sue a prospective employer for disability discrimination. After accusing the business of failing to make reasonable adjustments during the application process, the applicant used generative AI tools to analyse his email correspondence with the employer and identify legal grounds for his claims.
The claims have since been allowed to proceed to a full tribunal.
Lucy Cobb, employment law expert and Advice Operations Manager at BrightHR, highlights the important questions this case raises about the impact of AI on employee relations and conflict resolution:
“AI is becoming more and more integrated into the workplace each year, with a recent PwC survey finding that at least 35% of workers in the UK use it in their day-to-day roles, and many employees reportedly using it in secret.
“The impact of this growing use of AI by employees is only just beginning to manifest in real-world legal cases. As free, publicly available AI tools advance, we’re likely to see more workers leveraging them to assist in employment disputes—whether by drafting legal documents, reviewing contracts for potential breaches, answering legal queries, or offering guidance.
“What was once a lengthy, daunting process for individual litigants—drafting and submitting a tribunal claim—can now be done relatively easily and cost-effectively with the aid of AI. With this in mind, employers must be aware of the possibility of employees and even job applicants using AI and algorithmic tools to quickly and efficiently generate claims against them.
“In some respects, this levels the playing field for workers, as employees without the means to afford legal representation may now feel empowered to pursue claims that might otherwise have been ignored. This lowered barrier to entry will have a democratising effect, allowing employees with genuine grievances to more easily bring claims against their employer and reach justice.
“On the other hand, the growing use of AI also increases the potential for vexatious litigants to file meritless lawsuits against employers quickly and cheaply, highlighting how unregulated AI not only provides businesses with growth and innovation opportunities but also introduces new risks.
“The tribunal process will equally be affected if AI is used to generate claims, increasing the likelihood of inaccurate or biased information being presented at court. While claimants are always obliged to give evidence on oath, judicial office holders will be under increased pressure to thoroughly assess the accuracy of any AI-generated materials used at tribunal and mitigate any issues stemming from inaccuracy.”
Proactive measures for employers
Though cases of AI being used to pursue legal action against employers remain rare, the recent case could mark the beginning of a broader trend. While AI is empowering employees with tools to build stronger cases and levelling the legal playing field, it also presents a risk to businesses who find themselves having to defend against an increase in AI-driven tribunal claims.
Lucy advises, “If an employee or individual wants to bring a claim against a business, how they go about doing this is up to them. The UK is still something of a wild west when it comes to AI regulation, so until clearer guidance is provided, it will be up to tribunal courts themselves to assess the reliability and accuracy of claims compiled by AI tools to ensure a fair outcome.
“What employers can do, however, is be proactive in consistently reviewing their policies and practices to prevent any breaches of contract or unlawful discrimination. While businesses should be doing this anyway, the potential of having to face more tribunal claims—and potentially more vexatious claims—due to the advancement of AI should prompt them to thoroughly review their HR policies and processes and ensure they are watertight.
“In general, I would advise businesses to make sure they understand the full capabilities of AI and implement measures in their own workplaces to prevent potential misuse. This should include regular audits of AI systems for bias, transparent communication with staff on how AI can and should be used, and clear policies to address any issues arising from AI-generated claims.
“Ultimately, though, AI is an ever-developing phenomenon whose full implications for employment law are yet to be realised. A recent report from Accenture found that 78% of business leaders believe AI will have a significant impact on employee relations and conflict resolution in the next three years, suggesting that we have still not witnessed the full breadth of its potential effects on employment law disputes. With no specific laws currently regulating AI use in UK workplaces, businesses are navigating a 'wild west' of uncharted territory.”