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What potential new laws may help regulate AI in the workplace?

On Behalf of | Jul 18, 2025 | Business Law |

Artificial intelligence (AI) has already begun to change many workplaces. Companies can automate job functions that workers used to have to perform. They can streamline processes related to hiring, marketing and data analysis. Current AI does not actually think for itself but rather analyzes available information to reach a conclusion. AI can also create audio files, video footage and graphic art.

AI may eliminate some jobs and make work functions easier for professionals in certain careers. The use of AI could help eliminate favoritism and inherent personal bias during employment reviews. It also presents an opportunity for misconduct and could lead to violations of workers’ rights.

As more companies integrate AI into workflows, regulations on this technology are all but inevitable. Many states have adopted laws related to AI in the workplace. Workers in Pennsylvania can look to laws in other states to understand which laws Pennsylvania state lawmakers may eventually adopt for their protection.

What types of regulations will likely be adopted as AI becomes more widespread in the workplace?

Employer accountability laws

Currently, there are already written statutes and common law concepts that hold employers accountable for negligence and mistakes by their workers. The law is likely to shift to hold employers accountable for AI-related issues as well.

In California and Colorado, for example, organizations have to establish that they properly tested and reviewed AI to prevent discrimination during hiring processes. If employers do not take appropriate steps to ensure that AI conforms with existing employment regulations, the company may be liable when AI violates the rights of individuals.

Rules regarding transparency

Disclosure laws are likely to follow the widespread adoption of AI software. Businesses may need to inform employees, customers and other companies of how they use AI. In Illinois, companies must advise workers of the use of AI when hiring, disciplining or reviewing worker performance. Businesses may also need to advise customers or clients about how they use AI.

For example, if a construction firm uses AI to generate or review blueprints, the company may need to provide disclosures to prospective clients advising them that AI, not a human professional, performs aspects of the work. Companies may also need to clarify their rules related to AI in job listings or training materials. Applicants may have a right to know how they allow or limit worker use of AI software.

Understanding how changes in technology and the law can influence workers’ rights can help people fight back against inappropriate employer conduct. Changing regulations related to AI in the workplace may help protect employees from job loss and even retaliation triggered by AI software.