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Labor law risks of using AI

PCPD conducted compliance checks on 28 local organizations from August 2023 to February 2024 on their collection, use and processing of personal data using AI, and their AI governance structure. PCPD will continue to monitor personal data privacy and protection risks arising from the development, deployment and use of AI.

AI in other jurisdictions

The Artificial Intelligence Act in the EU entered into force in August 2024. Generally, it follows a risk-based approach to classify AI systems into levels of risk and establish certain requirements based on that risk. The EU classified activities regarding selection, promotion, recruitment and dismissal as high risk.

The UK government chose a “pro-innovation approach” to regulate AI. The UK government currently has no intention of introducing a comprehensive statute to regulate AI and will instead adapt existing rules to address risks. The intention is to maintain flexibility in commercial operations. However, the new UK government has not ruled out the possibility of legislating the development of AI systems in the future.

AI can bring potential benefits and efficiency gains to employers. These include:

  • Derive insights for talent acquisition
  • Evaluate performance and staff experience
  • Improve personnel planning and training.

Being a principles-based and technology-neutral piece of legislation, the PDPO allows for a relatively flexible regulatory framework for the use of AI that balances the needs of relevant stakeholders and the legal requirements for personal data appropriate to local circumstances.

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