Effective AI adoption depends as much on governance and compliance as it does on technical capability.
As AI is embedded, organisations must clearly allocate responsibility, assess legal risk and embed controls from the outset. Since AI tools are typically deployed on a global or regional basis, employment risks are inherently cross‑border, potentially engaging different ongoing rules on transparency, consultation and data protection across multiple jurisdictions. Those rules can often differ depending on the type of technology and the purpose of use, creating additional compliance risks.
Governance
Governance arrangements should define who is responsible for approving and overseeing decisions on the deployment and use of AI affecting workers, and how those responsibilities interact across legal, HR, IT and leadership functions. Without defined governance, AI use risks becoming fragmented, inconsistent and legally exposed.
AI governance and accountability are particularly critical where AI systems influence employment‑related decisions, such as recruitment, performance assessment, workforce planning, monitoring and disciplinary processes. Governance arrangements should clearly specify who has authority to approve the use of AI tools in workforce contexts, who is responsible for ongoing oversight, and how concerns or risks can be escalated and challenged.
Policies and standards
AI policies play a critical role in translating governance principles into practical workplace expectations. Organisations should implement clear policies governing both the procurement and deployment of AI systems and the use of generative AI tools by employees. These policies should address issues such as acceptable use, confidentiality, data protection, intellectual property, human oversight, recordkeeping, transparency and vendor management.
Policies should be supported by training, guidance and operational procedures to ensure consistent application across the workforce. As AI capabilities evolve rapidly, employers should regularly review and update policies to ensure they remain aligned with legal requirements, emerging risks and business objectives.
Ongoing oversight and legal change
Workforce AI operates in a rapidly evolving legal and regulatory environment, with growing scrutiny from regulators, investors and other stakeholders. Ongoing oversight is essential to ensure that AI systems continue to operate as intended, that risks are identified early, and that governance remains aligned with changing use cases and technologies. This is particularly important where AI tools are updated, retrained or repurposed over time.
Beyond the obligations to involve employee representatives at the implementation stage, there may also be ongoing obligations during operation, including to inform or consult on material changes to the use of AI, monitor and report on impacts on the workforce, and address any adverse effects identified in practice. Organisations should also maintain appropriate documentation, audit trails and review mechanisms to demonstrate compliance, support accountability, and enable continuous reassessment of whether AI systems remain lawful, fair and appropriate in their use.
Organisations must actively monitor legal, regulatory and guidance developments across the jurisdictions in which workforce AI is deployed and adapt policies, controls and practices accordingly. Regular review of AI use, documentation and decision‑making processes is critical to maintaining compliance, managing litigation risk and demonstrating effective governance in practice.
Legal and Regulatory Change Management
The legal framework governing AI is developing rapidly across multiple jurisdictions, with new legislation, regulatory guidance, enforcement activity and case law continuing to emerge. Employers operating internationally may be subject to a patchwork of obligations relating to AI governance, discrimination, automated decision-making, transparency, employee monitoring, data protection and worker consultation.
Organisations should implement processes to monitor legal and regulatory developments, assess their impact on existing AI systems and update governance frameworks, policies and practices as required. A structured horizon-scanning process can help ensure that AI programmes remain compliant, adaptable and aligned with evolving global expectations.
Key actions to consider
Establish a cross‑functional AI governance framework with clear accountability for workforce‑related AI use, including defined escalation and decision‑ownership routes.
Embed legal risk assessment into AI lifecycle processes, ensuring workforce AI tools are reviewed for data protection, equality, transparency and employment law compliance before deployment.
Translate AI governance into operational controls, including clear usage policies, manager training and documented processes for human review and challenge.
Implement a process for ongoing monitoring of legal and regulatory developments and regular review of workforce AI use, documentation and controls.
Establish a cross‑functional AI governance framework with clear accountability for workforce‑related AI use, including defined escalation and decision‑ownership routes.
Embed legal risk assessment into AI lifecycle processes, ensuring workforce AI tools are reviewed for data protection, equality, transparency and employment law compliance before deployment.
Translate AI governance into operational controls, including clear usage policies, manager training and documented processes for human review and challenge.
Implement a process for ongoing monitoring of legal and regulatory developments and regular review of workforce AI use, documentation and controls.
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
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© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
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