Developing a strategic plan for AI in the workplace: Where to start

Organizations should ensure that they have considered the role of their current and future workforce, as well as AI, in attaining their goals.

The increased use of AI-based tools and machines in the workplace will lead to new legal questions concerning privacy/security, workplace safety, and far-ranging employment and labor issues. (Photo: Shutterstock)

While various advancements in technology, robotics, and artificially intelligent (AI) systems have entered the workplace in recent years, many have debated how quickly these new tools, machines and systems would fully transform the workplace. It seemed that there was at least a bit of runway before a major transformation, including any resulting job loss, would be realized.

Once the COVID-19 pandemic arrived, however, millions of workers around the globe were sent home to work, some continued to work on-site during the pandemic, while many others found themselves without employment. Employers had to pivot quickly to revamp their systems and prepare workers for a new workplace in order to remain operational, which did not leave much time to strategically plan or evaluate particular technologies and tools, or consider their long-term impact.

Michelle Capezza is a member of Epstein Becker Green in the Employee Benefits & Executive Compensation and Health Care & Life Sciences practices. She practices law in the areas of ERISA, employee benefits, and executive compensation.

Related: Telling the story: Benefits communication and technology in 2020

Various types of working arrangements, overall workforce management, and delivery of products/services were made possible in large part due to the advancements in technology and communications, cloud-based services, and a variety of AI-based tools.

Now, many employers are evaluating their business models, including when and how to bring their employees back to the workplace, whether they will continue to function with remote work arrangements or deploy a new hybrid work approach combining remote and on-site workdays, as well as their overall recruitment needs. Further, the machines, tools and AI-based systems that were being created have had another year to advance.

As a result of these events, there is a greater recognition that the future is now, the meaning of the workplace has been forever transformed, and that the runway to introducing advancements in AI into the workplace has been drastically shortened. Organizations should use this time as a strategic planning opportunity for the deployment of AI in the workplace. Here are some important considerations:

Leadership, vision and multidisciplinary teams

Organizations should ensure that along with defining their culture, values, and future vision, that they have considered the role of their current and future workforce, as well as the role of AI, in attaining their goals. Initiatives should be aligned under a common focus so that human capital strategy and the introduction or expansion of AI in the workplace are coordinated. There needs to be buy-in from the top of the organization and among a multidisciplinary team of stakeholders regarding how the use of AI will improve business and employee performance, as well as competitive stance.

Governance policies and procedures should be established for evaluating, introducing and monitoring the AI-based tools, and assessing the long term impact of the use of these tools on the shape of the employer’s workforce, whether humans will work alongside machines capable of data-driven decision making, use them to augment their own capabilities, or be replaced. Organizations should also be mindful of the impact these seismic changes will have on the well-being of their workforce and determine ways to support workers through this transformation.

Consideration can also be given to introducing AI-based tools into a select few functional areas at a time in order to allow workers appropriate time to adjust and to determine what benefits and efficiencies the changes have brought to the organization.

Determine costs and establish budgets

Organizations must determine the costs and benefits associated with such workplace transformation and budget accordingly. This includes an analysis of how much it will potentially cost to:

(i) build/update the appropriate infrastructure for networks, servers, internet-of-things, data management and privacy procedures for advanced technologies and AI-based tools, (ii) update cybersecurity practices and breach response procedures to account for these changes, (iii) engage and manage vendors and third-party service providers (iv) acquire and implement AI-based tools across the organization or in selected functional areas through a phased approach, (v) train employees to use the tools, (vi) correct any errors that could result from use of the tools, (vii) sever and/or replace employees.

Once the overall projected costs can be assessed, determine the potential benefits and costs savings that may be realized in order to build out the business case for such changes.

Understand, organize data and build trust

Organizations must understand where their data is generated. Various systems and sensors within organizations collect data. Further, employee on-site and remote activities are increasingly being tracked through their interactions with these systems. Organizations need to determine how they want to harness this data, redefine functions and roles, and use data in a meaningful way.

Further, given that the AI algorithms are trained on data, the data that an organization uses to train these algorithms should be appropriately sourced and in proper order, whether the organization utilizes internal or external data, or a combination of both. For example, if a dataset used to train an algorithm has data missing, it contains errors, or it is imbued with certain biases, this will adversely affect the AI-based tool’s machine learning and the organization’s data-driven decision-making outcomes.

Organizations will also need to build trust in employees as they work in these environments, especially as their work activities and productivity are being tracked, traced and analyzed by new tools. An employee communications plan should be considered to address these issues.

Identify and vet desired AI-based tools

Organizations should establish within their governance policies and procedures their requirements for engaging and monitoring service providers, vetting and monitoring tools, reviewing and monitoring data, and negotiating related service agreement terms. As various AI-based tools are considered and introduced in the workplace, there should be a process for vetting those tools and the service providers with a multidisciplinary team comprised of professionals from areas such as IT, risk management, data privacy and security, compliance, legal, human resources, and any outside advisors.

In addition, a representative group of the intended users of the tools should be included in the assessments, especially with regard to their thoughts concerning the utility of the tools and potential benefits of their use. There also is a greater understanding of the pros and cons of the various tools that were deployed in 2020 and that information can be used to improve upon future decisions. The organization might also establish a service agreement addendum to reflect its key terms that is ready for future service agreement negotiations.

Address recruitment/upskilling

Many organizations will need to recruit new workers, or upskill existing workers, for the challenges of managing and operating in an AI-based workplace, from the very technical side to the positions that will simply require new skills in order to be able to work with and alongside machines.

Notably, part of the National AI Initiative under the National Artificial Intelligence Initiative Act of 2020 (NAIIA) is to develop educational and training programs to prepare the workforce to create, use, and interact with AI systems. The NAIIA also requires the National Science Foundation to contract with the National Research Council of the National Academies of Sciences, Engineering, and Medicine to conduct a study regarding the current and future impact of AI on the U.S. workforce, the results of which are set to be available publicly by January 1, 2023.

Anticipating the educational and training needs on the horizon, employers should consider implementing programs such as qualified educational assistance plans that, under current law, can provide tuition reimbursement, as well as payments toward employees’ student loans, up to an overall $5,250 for the calendar year through December 31, 2025. In addition, changes in law must be monitored (such as proposals to allow employers to design 401(k) plans to treat an employee’s student loan payments as elective deferrals for purposes of eligibility to receive employer matching contributions), so that employer programs can be designed or updated accordingly.

Comply with applicable law

Organizations must be mindful that federal, state, local and international laws continue to evolve, including those that will impact data privacy and security, employment, compensation, benefits and artificial intelligence, and be careful that use of an AI-based tool does not cause them to violate applicable law.

For example, be cautious that use of an AI-based:

The increased use of AI-based tools and machines in the workplace will lead to new legal questions concerning privacy/security, workplace safety, and far-ranging employment and labor issues as individuals are required to work with, or become displaced by, these tools. The co-working relationship between humans and machines has yet to be defined, it will require thoughtful planning and navigation of existing and new laws. Transitioning workers from the workplace will also require careful consideration, including desired severance and retirement programs.

The decisions that organizations make today will have a long-standing impact on the human workforce and the success of the future workplace. It is crucial to develop a strategic plan.

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