- with readers working within the Securities & Investment industries
As HR professionals increasingly use AI tools for new purposes, employment attorneys are warning them to retain a human element when delivering layoff news to employees. Since some companies are using AI to draft nearly any type of document, there is concern that they will use ChatGPT and similar tools to issue layoff announcements. These concerns center on potential privacy, compliance, and reputational risks inherent in using AI for certain employer tasks.
More specifically, sole reliance on AI is likely to lead to the inclusion of information in layoff notices that shouldn’t be included or that violate relevant rules or laws. Layoff notices that depend entirely on AI are likely to increase the risk of lawsuits, viral social media backlash, and reputational damage.
An AI-crafted layoff notice is also likely to lack the sensitivity and empathy required in such situations. As a result, human oversight is critical when issuing proper layoff notices. Employees are likely to spot AI-created notices, and the fallout from such an insensitive approach can be immense. While AI is useful for brainstorming ideas, professionals should not rely on it for its drafting capabilities without careful review and editing.
Furthermore, an AI-generated draft of a layoff notice may contain incorrect information. For instance, AI might state that the layoff is not related to performance, and in some cases, that statement may be incorrect. Employees who later challenge their layoffs may point to the layoff notice as proof that the company had no good reason to lay them off.
Generally, how HR communicates layoff decisions is important not only to the employees facing layoffs but also to the remaining employees, consumers, and others invested in the company. Layoffs can reduce brand strength for a few weeks to nearly a year.
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