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This article appeared in Arkansas Business on December 16, 2024 and has since been updated by author MaryScott Polk Timmis.
Have you started using artificial intelligence (AI) in the workplace? Some employers are diving headfirst into AI, while others are sitting back and taking it all in before dipping a toe in the technology pool. According to Forbes, 72% of businesses have integrated AI into at least one business function. However, the rapid adoption of AI has not come without its concerns. Employees, for instance, are concerned that AI could lead to job displacement and higher unemployment rates according to a 2024 study by Deloitte Global.
AI is quickly becoming necessary for organizations to stay competitive in today’s workforce. One of the most common applications of AI is chatbot technology, which uses natural language processing and generative AI to simulate human conversation. Examples of popular generative AI chatbots include Open AI’s ChatGPT and Microsoft’s CoPilot. These tools are being used to handle a variety of functions, including basic customer service issues, human resources support, and content creation. By delegating routine tasks to chatbots, organizations free up human employees to focus on more complex issues.
Organizations will need to adhere to privacy regulations to protect sensitive employee data and implement measures to prevent data breaches and misuse.
President Trump’s executive order titled Removing Barriers to American Leadership in Artificial Intelligence seeks to create “a path for the United States to act decisively to retain global leadership in artificial intelligence.” President Trump’s AI Order seeks to redirect the United States’ approach to the regulation of artificial intelligence. The order states, “It is the policy of the United States to sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security.” President Trump repealed President Biden’s Executive Order on AI. We can expect agencies to create action plans to achieve the policy outlined in President Trump’s AI Order and it will be important to stay up to date on these plans.
When implemented effectively, AI can lead to increased productivity and efficiency, and cost reduction. However, there are risks and limitations of AI when used improperly. While AI offers immense potential, it also poses challenges that must be addressed by employers to ensure usage complies with any applicable regulations. It is important to note the Trump AI Order does not suspend applicable federal, state, or local laws, which employers must still account for when using AI.
Regardless of how your company chooses to approach AI, implementing a policy regarding AI usage in the workplace is a must. The policy should detail appropriate uses and clearly communicate to employees how (and how not) to use AI in every day work. It would also be beneficial to provide training to help employees understand acceptable usage.
AI can take on a variety of different roles in the workplace to optimize efficiency such as automating tasks, enhancing recruitment, and tracking performance. Automation of tasks like payroll processing and attendance tracking can improve productivity. AI tools help automate candidate screening and analyze resumes to streamline recruitment. AI can also help employers make informed decisions about promotions and allocation of resources by tracking performance, retention, and production.
If your organization is diving headfirst into AI, it would be beneficial to implement a policy outlining the proper use of such tools. Likewise, if your organization is merely dipping a toe in, a policy differentiating acceptable uses versus unacceptable uses would be appropriate. For example, companies might prohibit employees from directly copying and pasting AI-generated content to ensure originality and accuracy. However, if your organization is watching from the side of the pool and not getting in just yet, it is important to educate your employees on the organization’s stance and put such prohibitions in writing.
Once your organization has implemented a policy regarding AI, the work isn’t over. The policy will need to be updated as technology evolves and privacy laws are enacted. Whether diving in headfirst or cautiously testing the waters, companies that implement a strategic approach to AI will be in a better position to utilize its full potential.
MaryScott Polk Timmis is an associate attorney at Wright Lindsey Jennings with a practice focused on intellectual property, corporate law and estate planning.