Investors’ Expectations of Ethical AI in Human Capital Management

14 April 2022

Mark Lewis, a senior consultant in our commercial team, Dr Christine Chow, (HSBC Asset Management) and Paris Will (London School of Economics) have written a white paper on the “Future of work: investors’ expectations of ethical artificial intelligence in human capital management”.

From a legal and regulatory perspective, there is very little law and regulation around the world applying specifically to the use of AI in the workplace and employment processes.

There are prospective laws and regulations in various places that are intended to address this specifically - the best example being a comprehensive and substantial regulation proposed for the European Union and those outside the EU who want to place AI in the EU market (the Artificial Intelligence Act).

But, also, in many countries there is an existing body of law and regulation that will apply to employers’ use of AI in the workplace. Unfortunately, when, how, and why that law and regulation may apply, and the implications of their application, aren’t instantly obvious. What is obvious is that there is a growing movement of concern about, and resistance to, the use of AI, automated decision-making, and related processes around the workplace, and that regulatory and legal challenges are happening – now.

This white paper aims to address this particular problem:

  • by addressing board accountability and governance considerations;
  • by alerting readers to when, how, and why law and regulation will or may apply here; and
  • then by outlining:
    • a selection of laws and regulations that now apply specifically to the adoption and use of AI in the workplace;
    • the potential impact of the proposed EU Artificial Intelligence Act; and
    • certain existing laws and regulations in various countries that are most likely to apply in such circumstances, but with judicial interpretation and application.

In doing so, we hope that all those who should be concerned will be better able to understand, plan for, and manage the governance, legal and regulatory, and reputational implications, risks, and exposure that could arise in adopting and relying on AI systems and processes around the workplace.

If you would like to discuss this topic in more detail please do get in touch with Mark.

Read the full paper.