Generative AI Adoption Surges: What Employers Need to Know

The latest McKinsey Global Survey on AI reveals a dramatic spike in generative AI adoption, with 65% of organizations now regularly using the technology - nearly double the rate from just 10 months ago. As generative AI rapidly transforms workplaces, employers must stay ahead of the curve from a labour law perspective.

The survey found that generative AI is already delivering measurable benefits, with organizations reporting both cost decreases and revenue increases in business units deploying the technology. However, the adoption of generative AI also comes with risks that employers need to carefully navigate.

Inaccuracy emerged as the most recognized and experienced risk of generative AI use, with 23% of respondents saying their organizations have faced negative consequences from AI inaccuracy. Other top risks include cybersecurity issues and lack of explainability.

Interestingly, workforce and labour displacement concerns have decreased compared to last year. Nevertheless, as generative AI becomes more prevalent in workplaces, employers must proactively address potential labour law implications.

Three key things employers should be doing from a labour law viewpoint:

1. Develop Clear AI Governance Policies: Only 18% of organizations currently have an enterprise-wide committee with authority over responsible AI governance. Employers should establish clear policies and oversight mechanisms for AI use in the workplace to mitigate legal risks.
   

2. Upskill Employees on AI: Just one-third of organizations require generative AI risk awareness and mitigation skills for technical talent. Employers should invest in training programs to ensure employees understand how to use AI tools responsibly and safely.
   

3. Monitor for Bias and Fairness: The survey highlights equity and fairness as ongoing concerns with AI use. Employers must implement robust testing and monitoring processes to detect and address potential biases in AI systems that could lead to discrimination claims.

By taking these proactive steps, employers can harness the benefits of generative AI while minimizing legal and ethical risks in the evolving workplace landscape.