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Harnessing the Power of AI – A Guide for Employers

Rebecca Johnson

Artificial intelligence (AI) is no longer a concept for the future – it’s a reality reshaping how organisations operate today. From recruitment and workforce planning to risk identification and policy enforcement, AI holds immense potential for driving efficiency and insight for HR and employment law. But as the pace of adoption accelerates, so too does the complexity of governance.

Research conducted by Axiom organisation VinciWorks found that only 44 per cent of organisations had implemented any procedures, training or other preventive measures to protect against compliance breaches by AI. For compliance leaders, HR professionals, and business decision-makers, the challenge is clear: how to harness AI in a way that’s innovative yet responsible, supporting business goals while meeting legal obligations. At Axiom GRC, we help organisations unlock this balance. With insights from WorkNest, our expert HR and employment law organisation, this article explores how employers can integrate AI with confidence from an HR standpoint.

  • Understand how AI Is already being used in your organisation

Many employees are turning to tools like ChatGPT to speed up tasks, generate content, or solve complex problems – often without management approval. This is known as Shadow AI – where employees use AI tools outside of company-approved systems.

Shadow AI can present a serious risk to IT and HR leaders. This unsanctioned usage, often driven by speed and convenience, leaves gaps in oversight and exposes businesses to breaches and misinformation. Employers need proactive governance, training, and monitoring protocols to get ahead of this rising trend.

WorkNest research revealed that nearly one in four employees had used AI at work without informing their employer.

Key tip: Conduct an internal audit of AI usage, including Shadow AI.

  • Be proactive about AI policy

Creating a well-defined AI policy is the foundation of responsible innovation. It should outline acceptable use, data protection protocols, risk controls, and employee responsibilities.

WorkNest provides a free policy template to help employers implement a robust AI strategy that supports productivity without compromising compliance.

Download policy
  • Use AI to enhance (not replace) human judgement

Using AI in hiring promises efficiency, but if done carelessly, it can compromise fairness. Screening tools that rely on flawed datasets or opaque algorithms could inadvertently discriminate against candidates based on gender, ethnicity or socio-economic background.

This was the case with Amazon, which had to scrap its AI hiring tool after discovering it systematically downgraded CVs from female applicants – because it was trained on historical data reflecting male-dominated hiring patterns. This high-profile misstep highlights the critical importance of auditing datasets and avoiding bias baked into algorithms.

AI can accelerate decision-making, but it can’t replace human judgment. Key areas including, shortlisting candidates, drafting employment documents, making dismissal decisions and providing employment, require empathy, nuance, and legal understanding – and therefore professional, human expertise. Employers must draw clear boundaries for where automation ends and accountability begins, ensuring that people remain at the heart of people management.

  • Prepare for the impact on people

Automation raises real questions about job security. Employers need to address these concerns with openness and investment in skills.

According to WorkNest, over 60% of HR professionals expect moderate role disruption from AI within five years.

Communicate clearly, plan retraining, and involve employees early to manage the cultural impact of AI and automation.

  • Embrace AI with accountability

With the right frameworks, AI can enhance productivity, support better decisions, and unlock competitive advantage. But success lies in balance: empowering your people while protecting your business.

As part of the Axiom GRC group, WorkNest supports organisations in navigating the rapidly shifting AI landscape. Our approach combines expert legal insight with practical HR strategy – so businesses can embrace innovation while staying fully compliant.

Key steps for those in HR and Employment Law to consider:

  1. Audit how AI is currently being used in your teams.
  2. Educate your staff on both the benefits and boundaries of AI.
  3. Update employment handbooks and training frameworks to reflect AI realities.
  4. Define clear AI escalation paths for risky or unclear use cases.
  5. Monitor shadow AI trends and address emerging gaps in training.

Successful organisations are increasingly adopting a shared responsibility model, where HR, legal, CROs, CTOs, and internal auditors collaborate under a central AI risk framework.

AI is here to stay. And with the right governance, it can be transformative.