Thinking about using AI in your HR processes?

Written by Kevin Murphy
9 May, 2025

It is safe to say that AI is well and truly part of our day to day lives, whether it be via algorithms suggesting what we watch or listen to, or intelligent systems within accounting software for example. There is not doubt that AI can be helpful but it also comes with risk.

I was recently at an event and someone said “I don’t need a HR consultant, I use AI” before they swiftly walked away.  So I thought I would look into just how reliable AI can be for HR.

I started by asking two different AI platforms for a contract of employment.  I was provided with a contract by each that was drafted on what I suspect was USA law.  Both contracts allowed for the governing law and jurisdiction to be inserted, specifying areas for either State or Country to be inserted, even if I had inserted that the governing law was that of England and Wales the contract would not have been sufficient to meet the minimum standard prescribed by the Employment Rights Act 1996.

Now, we all know that AI is powered by instruction, so I asked both platforms for a contract for a UK business, sadly the result wasn’t much better. Again, key terms required by the Employment Rights Act 1996 were omitted for example reference to pensions.  In one of the contracts the notice period was over and above the statutory minimum and the other included annual leave entitlement over and above the statutory minimum.  Moreover, the protections and securities that we build into our contracts, those which help businesses and business owners protect themselves from unknown risks are entirely missing.

I next asked the 2 platforms to draft me an invitation to disciplinary.  Although the results were better than I had expected, there were significant flaws in both documents, neither specified the inclusion of evidence as required by the ACAS Code of Conduct on Disciplinaries and Grievances in the Workplace, both suggested that attendance was a suitable reason for disciplinary, although we cannot discipline for absences and finally there was no guidance or support in drafting the allegations in line with Strouthos v London Underground Ltd.

So the next time someone says “I don’t need a HR consultant, I use AI” I will wish them luck but ask them to exercise caution.  If you know anyone using AI for their HR it might be worthwhile advising them that caution is needed.

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