The Kings Speech stated that it was the intention of the Labour Government to “to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models.”
This intention marks a shift from the previous Government, which adopted a "pro-innovation approach", making use of existing legislation as opposed to bringing in new laws.
But, outside of possible new legislation, what other possible developments could there be in terms of the impact of artificial intelligence (AI) on employment law over the next decade?
Artificial Intelligence: Possible New Legislation
Legislation
In its election manifesto, Labour stated that its intention was to introduce "binding regulation on the handful of companies developing the most powerful AI models”. This is consistent with what later appeared in the Kings Speech in terms of seeking to "establish....appropriate legislation" in relation to artificial intelligence.
Regulatory Innovation Office (RIO)
In addition to this, the Government launched the Regulatory Innovation Office (RIO), another manifesto pledge, on the 8th October 2024. The RIO has been set up to serve as a catalyst for modernising UK regulations and accelerating product approvals. Its primary purpose is to streamline regulatory processes, eliminate barriers, and coordinate cross-sector innovation challenges. Through the RIO, the Government aim to position the UK as a global innovation hub, whilst ensuring swift, safe market access for groundbreaking technologies and services (including artificial intelligence).
Other Measures
Moreover, the Secretary of State for Science, Innovation and Technology, Peter Kyle, and the Parliamentary Under-Secretary of State at the Department for Science, Innovation and Technology (DSIT), Baroness Jones of Whitchurch, between them are planning to:-
- Introduce a statutory code requiring artificial intelligence companies to share safety test data with the AI Safety Institute (AISI) and the Government
- Place the AI Safety Institute (AISI) on a statutory footing
- Convert agreements between the Government and AI companies that are currently voluntary, into legally binding commitments
Other Possible Developments
Other potential developments (very much speculative, with the emphasis on the word 'could' as opposed to 'will') in terms of the impact of artificial intelligence upon employment over the coming decade include the following:
- Enhanced Workplace Monitoring and Privacy Regulations: The rise of artificial intelligence powered monitoring systems in workplaces could ultimately prompt significant legal developments regarding employee privacy rights. This could be in the form of detailed regulations specifically addressing the use of AI surveillance tools, including requirements for transparent disclosure of monitoring practices, limitations on data collection, and stricter consent requirements. This may include new provisions within the UK GDPR framework specifically tailored to AI workplace monitoring, mandatory impact assessments before implementing AI surveillance systems, and clear guidelines on the storage and processing of employee data. Employers will likely need to demonstrate legitimate business interests for AI monitoring and ensure proportionality in their approach. The regulations might also establish 'red lines' for certain types of AI monitoring deemed too intrusive, such as sentiment analysis or personal characteristic profiling without explicit consent.
- AI Discrimination and Bias Protection Measures: New legal frameworks could ultimately emerge to address artificial intelligence related discrimination in recruitment and workplace decisions. This could include mandatory algorithmic impact assessments before implementing AI in hiring processes, requirements for regular bias audits of AI systems, and expanded protected characteristics under the Equality Act 2010 to account for AI-specific forms of discrimination. Employers could face new obligations to demonstrate that their AI systems have been tested for bias across various demographic groups and to maintain transparency in how AI makes decisions affecting employment. There might also be specific requirements for diverse training data in AI systems and regular reporting on AI-related employment decisions to ensure fairness and prevent discriminatory outcomes.
- AI Skills and Training Rights: Employment law could evolve to address the need for workforce adaptation to artificial intelligence technologies. This could include new statutory rights for employees to receive AI-related training. We could also see mandatory requirements for employers to provide reskilling opportunities when implementing AI systems that significantly impact job roles. This could include minimum training hours, guaranteed budgets for professional development, protection against dismissal without adequate retraining opportunities, and a requirement for employers to conduct and act upon skills gap analyses when introducing new AI technologies.
- AI Decision-Making Accountability Framework: New legal requirements could emerge regarding accountability for AI-made decisions in the workplace. This could include mandatory human oversight of significant AI decisions affecting employment, clear appeal processes for employees affected by AI decisions, and specific liability frameworks for when artificial intelligence systems make errors or unfair decisions. Employers might need to maintain detailed records of AI decision-making processes and be able to explain and justify automated decisions affecting employees. This could also include requirements for 'explainable AI' in workplace contexts and clear chains of responsibility for AI-driven decisions.
- Collective Bargaining and AI Implementation Rights: Trade unions and employee representatives could gain new statutory rights regarding AI implementation in workplaces. This could include mandatory consultation requirements before implementing AI systems that significantly affect working conditions or job security. We might see the establishment of 'AI implementation committees' with employee representatives, similar to existing works councils. The law might require collective agreements to address AI implementation and provide for negotiation rights over AI-related changes to working conditions. This could include rights to negotiate over data collection, performance metrics, and the pace of AI integration into workplace processes.
- The Benefits Of AI For Employers Will Continue To Gain Momentum: Including productivity gains, enhanced decision-making, and increased efficiency as tasks and processes are simplified and streamlined. The impact of this (including the impact upon jobs) was discussed extensively in a previous article here.
- Paving The Way For A Four-Day Working Week To Become The Norm: This was a subject that was discussed extensively in a previous article here.
Whilst we may see the beginnings of some of these trends in the short term, it is likely to take several years for many of them to fully emerge / materialise. As the impact that artificial intelligence has upon jobs, workplace practices, and the economy intensfies over time, the greater the pressure will be upon the Government to act / intervene and bring in some of the measures discussed.
Looking Ahead: The Gradual Evolution of AI in Employment Law
The transformative impact of artificial intelligence upon employment law and workplace practices is something that is likely to unfold gradually over the coming years. Whilst some of the potential developments outlined may begin to emerge in the near term, the full realisation of many them is likely to occur over an extended period.
As artificial intelligence continues to reshape the employment landscape, its effects on jobs, workplace dynamics, and the broader economy will intensify. This escalating impact is likely to create mounting pressure on the Government to take decisive action and implement regulatory measures. Potential changes in areas such as workplace monitoring, discrimination protection, skills training, decision-making accountability, and collective bargaining rights is likely to be introduced progressively as the need for intervention becomes more apparent.
The Government's response is likely to be calibrated based upon real-world evidence of AI's impact on employment and the effectiveness of existing regulatory frameworks. As challenges and opportunities become clearer through practical experience, we could see the gradual introduction of more specific and comprehensive legislation. This measured approach would allow for careful consideration of the implications, and ensure that regulatory responses are proportionate and effective.
