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Artificial Intelligence (AI) is already in use in many workplaces with recent studies suggesting that only 12% of Kiwi employers have AI policies, despite 84% of employees using AI at work.

Workplace AI typically falls into two categories: generative AI and computer vision AI. This article focuses on generative AI, which creates human-like responses in real time. Generative AI tools are “trained” on learning materials to generate content in different formats, such as text or video.

In New Zealand, we lack specific AI legislation, so the onus is on employers to ensure that use is appropriate and does not breach existing laws like the Privacy Act 2020 which govern personal information.

Risks in using AI at Work

The key risks that prudent employers should consider regarding generative AI use include:

• Inaccurate information: generative AI can produce information that is incorrect or misleading. Relying on this information without proper checks could be harmful.  For example, the New Zealand Law Society has sent around guidance explaining that AI is not a safe research tool, as it presents results including cases that don’t exist.
• Data Privacy: generative AI may use inputted data as training material or collect it for use by the software owner or third parties. There is a risk that confidential or sensitive information is circulated where this is put into the tool, and this could breach the Privacy Act 2020 in terms of restrictions on the use and disclosure of personal information. This also applies to storage and security of information in the tool.
• Employees using AI

AI Usage Policies

Assuming it is likely that employees are using AI at work, to mitigate the risks identified above, we recommend employers implement an AI usage policy covering the following:

• Define AI usage limits and platforms
  • Whether AI use is permitted, limited or prohibited
• Establish rules and procedures
  • Which tasks AI is permitted for and a contact for employees to ask questions or raise concerns with regarding AI.
• Outline the security risks and prohibit the use of sensitive data
  • Address security risks and prohibit the input of any confidential or sensitive information into AI systems.
• Require employee review of AI-generated work
  • AI-generated outputs should always be reviewed for accuracy, and never used as the final step in any work process.

Employers should regularly review and update AI policies and training to adapt to new developments.

Message for Employers

Copeland Ashcroft provide an AI policy for a fixed price of $750 plus GST (usually $1500 plus GST).  This offer is available until the end of August 2024.

If you would like to take advantage of this offer, please contact our team – admin@copelandashcroft.co.nz

Disclaimer: We remind you that while this article provides commentary on employment law, health and safety and immigration topics, it should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice from your lawyer for any questions specific to your workplace.