The Benefits and Risks of Using Artificial Intelligence in the Workplace

15 May 2026

By Nicola Gray, Partner, Aberdein Considine

Artificial Intelligence (AI) is rapidly transforming the modern workplace, offering employers powerful tools to improve efficiency, decision-making and competitiveness.

However, alongside these opportunities come important risks that employer organisations must carefully manage. Employers need to be aware of the key benefits and challenges of adopting AI in the workplace to make sure they make informed and responsible decisions.

Standout benefits include:

• Increasing efficiency and productivity as AI systems can automate repetitive, time-consuming tasks such as data entry and by reducing manual workloads, employees can focus on higher-value, strategic activities.
• Enabling enhanced decision-making by using AI tools to analyse large volumes of data quickly and identifying patterns that may not be immediately visible to human analysts.
• Providing cost savings through automation and improved efficiency to reduce operational costs over time.
• Improving the employee experience where AI can support employees in their work through the use of intelligent assistants, learning tools, and workflow automation.
• Providing a competitive advantage if the organisation can successfully integrate AI to innovate faster and respond more effectively to market changes.

However, caution must be applied to manage the risks of using AI in the workplace too.

The Data Protection Act 2018 (Code of Practice on Artificial Intelligence and Automated Decision-Making) Regulations 2026 came into force earlier this month, requiring the Information Commissioner’s Office (ICO) to issue a code aimed at providing clarity on how employer organisations should handle personal data when using AI tools in areas including recruitment, performance management and workforce analysis.

In practical terms, employer organisations using AI must ensure their systems comply with UK data protection laws and where automated decision-making is used, for example in recruitment or performance management, employers must implement adequate safeguards. These regulations reinforce that employers remain fully responsible for AI-driven data processing and must embed data protection principles and human oversight into the design and deployment of such technologies.

Where employers use AI in selection decisions, including during recruitment, they need to be cautious of inadvertently acting on bias which may expose the organisation to discrimination claims. This could include AI systems unintentionally perpetuating or amplifying biases present in the training data it is based upon, for instance recruitment tools can favour certain demographics due to historical data and need to be “trained” out of potentially discriminatory patterns.

Employers should therefore conduct regular audits and use diverse datasets to reduce this risk and ensure decisions involve an adequate degree of human review.

They should also avoid an over-reliance on technology where this could be counter-productive to progress. An excessive dependence on AI can reduce human judgement and critical thinking leading to poor decisions if the outputs are incorrect or misunderstood.

To maximise the benefits of AI, while managing the inherent risks of the developing tool, it is recommended that employers:

• Develop clear AI policies outlining the organisations level of “acceptable use” and responsibilities;
• Ensure transparency with employees about how AI is to be used;
• Invest in training and reskilling to prepare the workforce;
• Implement strong data protection measures;
• Maintain human oversight for critical decisions; and
• Regularly review and audit their AI systems for bias and accuracy.

AI presents significant opportunities for employers. However, its adoption must be carefully managed to address the legal and operational risks that come with it.

By taking a balanced, responsible approach, organisations can harness AI’s potential while protecting their workforce and maintaining the trust of their employees and customer/service-providers alike.

The risks and rewards of adopting AI within the workplace is the focus of Aberdein Considine’s next seminar series on 19-21 May 2026. All employers looking to learn some practical hints and tips in this area are welcomed to join.

Find out more here.