The impact of Artificial Intelligence on labor relations

Long before the first cars were created, there were carts, buggies, and carriages that were driven by chauffeurs. With urban growth in the 19th century, there was a greater demand for rental services for this means of transport and, as a result, the greater the number of professionals (chauffeurs).

In Paris, for example, the authorities saw the need to regulate the profession (from creating work schedules to setting the price of rates¹) and to require various skills, such as being over eighteen years old, having the aptitude and intelligence to drive and handle carriages and horses, among others. The misconduct was recorded in a notebook and could be grounds for expulsion from work.

With the advances in means of transportation came cars, buses and planes and, consequently, new regulations. Professionals who previously drove buggies and carriages needed to update themselves professionally and gain new skills, such as driving a car or a bus or flying an airplane, otherwise they would be out of work (at least in the transportation area).

On this point, it is worth reflecting: for you, has the profession of driving charts/carriages fallen into decline or has it only evolved along with the advances in man-made means of transportation?

This reflection, and why not to mention the concern of professionals, has been increasingly viewed, in view of the great and diverse technological advances in recent decades, especially that of Artificial Intelligence (AI), which has numerous possibilities for its use, such as: access, analysis and processing of a high volume of data and information, automatic creation of graphics by the AI based on data that it collected itself, customer services via Chatbot among others.

These advances will be increasing considering that, according to recent research by IDC Corporate², the projection of European market³ spending on AI and generative AI will reach around US$ 47.6 billion in 2024 alone and will have a compound annual growth rate (CAGR4) of 33.7% during the forecast period from 2022 to 2027. In Asia/Pacific¹ (China is expected to maintain its dominant position in the generative AI market and Japan and India are expected to become the fastest expanding countries in this market in the coming years), generative AI spending is expected to reach US$ 26 billion by 2027, with a CAGR of 95.4% for the period from 2022 to 2027.

However, despite significant investments and advances in the AI sector, the limits due to its excessive and indiscriminate use, have been the subject of debates and the subject of standardization, so that the European Commission, seeking to guarantee the fundamental rights of citizens and the protection of society, met in 2019 in Brussels and emphasized that:

”AI is not an end in itself, but rather an instrument that has to serve people with the ultimate goal of increasing human well-being.

To this end, the reliability of AI must be ensured. The values on which our societies are based must be fully integrated into the way AI evolves. The Union is based on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, in particular the rights of minorities” .6

Precisely in response to the concern of the European Commission and, because AI is quickly fed back and improved to provide better data and information, several changes and questions have been seen, such as: (i) how will AI be useful in the corporate environment? ; (ii) which professions will be the most affected or that will undergo some type of adjustment due to the use of IAs in companies? ; and (iii) what precautions must be observed for the use of AI?.

The impact of using AI on professions

In general, the use of AI at work allows the automation of various tasks, whether they are repetitive and routine - which often require a large part of an employee's day - or that require a higher level of knowledge and/or professional training, such as the preparation of complex calculations and creation of source codes, optimizing and increasing efficiency and agility in various operational processes existing in a company and allowing professionals to focus on more strategic and creative activities that require their full concentration.

However, some concerns on the part of workers cover this theme: Will people lose their jobs? Won't there be more people working in companies? What will the future of professionals be in the face of advances in AI?

When we think about the impacts of AI on professions, we need to go back to past centuries and remember the evolution of professions through reason (i) of the growth and modernization of society; and (ii) of technological advances. As an example, we return to the profession of the coachman that was transformed into that of a car driver or an airplane pilot.

With the emergence of new means of transportation and over the years, there have been many transformations, be they in the labor market, in the needs of society (extremely changeable), in the functions of drivers and pilots, in legislation, and in the vehicles and planes themselves. As an example, we can cite: (i) setting speed limits on airport roads and runways; (ii) creation of the seat belt and its need for use by drivers, pilots and passengers; (iii) mandatory toxicological tests; (iv) creating GPS maps and guides; and (v) creation of specific traffic and aviation laws.

The professionals who chose to pursue their careers in the area of passenger transportation needed to adapt to the changes and evolutions in the profession, having to learn (i) to read maps and use GPS; (ii) what to do in a risky situation to avoid a collision or minimize the impact of an accident; (iii) using transportation call apps (in the case of taxis and Uber); and (iv) develop emotional intelligence so they don't lose control or “get stuck” in a dangerous situation, etc.

Thus, when reflecting on the concerns of professionals (in whatever area) and how technology can contribute to the daily life of a professional, it is possible to conclude that those who do not keep up to date and keep up with the modernization of society and technological advances will be the most impacted by the advances in AI and its usability in the workplace.¹

This is because, despite the fact that AI assists or even provides a person to carry out certain tasks in a company, we must not forget that AI is not capable of replicating empathy, intuition, creativity, spontaneity, social experience, sensitivity and emotional intelligence of the human being, qualities that are fundamental at work.

AI is unable, for example, to have the same perception of a candidate as a professional recruiter, since it does not have the same qualifications, emotions, and practical experiences as a person. In the same way, AI is not capable of making strategic decisions in a company, considering that it does not have the intuition, experience, and knowledge of the entire scenario related to the challenging situation that is posed to it and that may have a positive or negative impact on a company.

The remodeling of corporate activities with the use of AI

As we have seen, technological advances (not necessarily just AI) directly or indirectly impact professions. However, this is a normal process and is intrinsically linked to the evolution of man and society.

Dealing specifically with the impacts of these developments on corporate activities, especially the use of AI in the workplace, some points are worth highlighting, such as:

• The need for a remodeling of the operational organization within companies, which ends up bringing greater agility in the provision of services;
• Encouragement to the learning, development of new skills and specialization of current employees and potential candidates;
• The use of certain IAs in corporate activities, such as Chat GPT, should be seen as an extension of the employees' minds and not their only source of research; and
• Creation of numerous new employment opportunities¹ in various sectors and areas, such as: technology (data engineers, AI specialists, information security analysts, etc.), law (lawyers who work with privacy and data protection, intellectual property, compliance etc.), marketing digital, teachers in the field of technology, etc.

Global concern in the standardization of AI

In the midst of so much news and advances achieved by AI, almost at the “speed of light”, there are numerous concerns and debates on the subject, so that a worldwide movement has been seen to regulate its use and limits.

The European Union is at the forefront of regulating this topic and, on 13/06/2024, the Artificial Intelligence Regulation was signed by the President of the European Parliament and the President of the Council of the European Union, which will take effect on 01/08/2024 and will be applied progressively until the year of 2026, when it will take full force.

The regulations use a risk classification to establish obligations to AI systems, even limiting the way in which they can be used in situations assessed as sensitive/high risks (Chapter III of the said Regulation), such as in the analysis of resumes for job openings. Faced with such limitations, Chapter II deals specifically with “Prohibited AI Practices”, such as the implementation of biometric categorization systems based on sensitive characteristics to create facial recognition databases and the use of real-time facial recognition technology by law enforcement officers, with exceptions for law enforcement agencies if they are looking for a person convicted or suspected of a serious crime.

The standard also states that (i) artificial images, audios, or manipulated videos must be labeled as created/developed by AI; (ii) all AI systems must respect existing copyright regulations; and (iii) information should be disclosed about the content used for AI training.

In terms of national regulations, there are two important bills in Brazil dealing with the subject and which are currently pending before the Legislature. Bill No. 2,338/2023 deals with the use of AI in Brazil and Bill 4,025/2023 concerns the requirement of express authorization from the people involved for the use of images and works by AI systems. For example, the image of a deceased person can only be manipulated by AI, if authorized by the family.

While such bills are under discussion, the Ministry of Labor and Employment (MTE) published Ordinance No. 1,234/2024, on 23/07/2024, establishing the Working Group (WG) to carry out studies, present proposals for public policies, programs, actions and developed public services involving AI for the future of work.

Some of the duties of this group consist of: (i) carry out studies and research on the impact of AI on the labor market and on Public Services; (ii) promote debates and discussion forums about AI; and (iii) propose public policies, professional qualification, and employability in the face of advances in AI.

Caution and imposition of limits on the use of AI at work

While there is no specific and current law in Brazil that addresses the use of AI at work, certain precautions must be taken by companies to avoid it, for example: (i) affront to copyright (who has the right to the creation produced by AI? The AI or the human that gave the AI the command?) ; (ii) occurrence of plagiarism¹ (can the creation of texts and codes with the help of AI be considered as plagiarism? To what extent will the use of AI to create texts and codes not be considered plagiarism?) ; (iii) adoption of unconscious biases by AI (racist¹, offensive, biased, etc.); and (iv) use and disclosure of incorrect data and information (where did AI get the data that was provided? Did the AI search for updated data?).

Thus, in order to avoid the situations mentioned above, it is extremely important that companies adopt certain precautions, such as:

• Creation of a Code of Ethics and Conduct containing clauses of general principles of conduct, respect for individuals, and duties to protect confidential information and intellectual property.

As we have seen, the misuse and/or indiscriminate use of AI in the corporate environment can violate copyrights, disrespect people, peoples, diversity of opinions, etc., which is why it is essential that employees are fully aware of their rights and obligations within the corporate environment;

• Insertion of confidentiality and intellectual property clauses in Employment Contracts.

As soon as the company imposes limits on the use of AI, such as not disclosing the company's confidential/business information on an AI platform to assist in carrying out activities, if this occurs, the company may adopt, due to the provisions of clauses in this regard in the Employment Contracts, some measures, such as: dismissing the employee due to non-compliance with a confidentiality clause and, even, holding the employee legally responsible for any damages caused to the company;

• Creation of areas of information security, privacy, and data governance in the company.

These are fundamental areas to be carried out, for example, (i) a risk mapping about the use of AI in existing areas of a company; (ii) the control of which people may have access to certain AI tools and what degree of permissions are granted for the administration and use of those tools; and (iii) monitoring what files, folders, information, and others, employees are having access to and where they are being used/shared;

• Creation and dissemination of a Policy containing information security topics (importance of not using public/open networks, especially when using an AI system, in order to mitigate risks of data and information leakage), data protection, and the duty of secrecy. Regarding this point, the reflection remains: to what extent can the employee provide sensitive company information and data so that AI can help him carry out the delivery he needs, such as the creation of an important code for a new product that wants to be launched? Can this information be used later by the competition, considering that the AI was fed with precious and confidential information?
• Map the database and research locations that AI uses to provide feedback and improve;
• Constant training is carried out on how AI can be used in the company and what precautions must be observed, such as: (i) reviewing the texts and data provided by the AI and confirming that, in fact, they are true and up to date; and (ii) not sharing data and information that could identify the employee or the company.
• Transparency regarding the use of AI, that is, citing the sources and platforms used and, as mentioned before, always be careful with unconscious biases of AI (racist, offensive, biased, etc.); and
• Tarjar images, videos and texts, mentioned that its creation was prepared with the help, albeit partial, of AI.

Conclusion

It is a fact that the countless professions around the world have, throughout history, been created, readapted or ceased to exist in the face of the modernization of society and the various technological advances.

Today, we live in an era where much is being discussed about the impacts (positive or negative) on professions with the use of AI in companies. Among countless reflections, AI (i) transforms and revolutionizes work, helping to carry out various activities that require significant time in the employee's day; (ii) promotes innovation in companies and stimulates the development of professionals; (iii) puts certain functions in companies into decline¹ ³; and (iv) creates new jobs (the labor market is increasingly looking for specialists in various areas of activity).

Therefore, fostering the collaboration of AI and human beings is fundamental, whether outside or within the labor market, since nowadays contact with technology is practically uninterrupted and there are rare companies that do not rely on some type of AI to make a given activity more efficient.

At the same time, the use of AI must respect certain limits (even if there is no law already in force in Brazil), so that there are no violations of rights, whether fundamental, intellectual property, copyright, data protection, among others.

To this end, companies must empower their employees to proceed with the responsible, ethical and transparent use of AI in their activities.

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¹ Available in: https://www.nationalgeographic.pt/historia/cocheiro-cocheiro-andar-taxi-no-seculo-xix_3264. Accessed on 19/07/2024.

² International Data Corporation (IDC) is the leading global provider of market intelligence, data, and events for the information technology, telecommunications, and consumer technology markets.

³ The European Union represents around one-fifth of the global AI market. Source: https://www.idc.com/getdoc.jsp?containerId=prEUR251966524. Accessed on: 16/07/2024

4 The CAGR quantifies the average annual growth of an investment, financial asset, or any data that varies over time. It is one of the main indicators for analyzing the viability of an investment.

¹ Available in https://www.idc.com/getdoc.jsp?containerId=prAP52048824. Accessed on 16/07/2024

6 COM/2019/168 final

¹ According to data collected by Brasscom, the technology market in Brazil will generate 797,000 job openings by 2025. Available in: https://www.gov.br/mcti/pt-br/acompanhe-o-mcti/noticias/2023/09/mercado-de-tecnologia-no-brasil-vai-gerar-797-mil-vagas-ate-2025#:~:text=A%20m%C3%A9dia%20%C3%A9%20de%20150,a%20reuni%C3%A3o%20em%20formato%20virtual. Accessed on 16.07.2024.

8 According to surveys, the big data sector is expected to create the most jobs by 2027. The number of jobs for analysts and data scientists, big data specialists, AI machine learning specialists, and cybersecurity professionals is estimated to grow by around 30%. Digital commerce, on the other hand, will be the area that will gain the most jobs in absolute numbers, with approximately 2 million new employees expected in various digital roles, such as e-commerce specialists, specialists in digital transformation, and specialists in marketing and digital strategy. Available in: https://www3.weforum.org/docs/WEF_Future_of_Jobs_2023_News_Release_Pt_BR.pdf. Accessed on 23/07/2024.

* Consideration contained in item 179 c/c article 97, both of the EU Regulation 2024/1689, available in the PT version at the link: https://eur-lex.europa.eu/legal-content/PT/TXT/PDF/?uri=OJ:L_202401689

¹ Who will be responsible in case of plagiarism? From the human who used the tool or the company that made the AI available or from the programmer who used third-party works to train the algorithm?

¹ In 2015, researcher Joy Buolamwini from the MIT Media Lab was designing an intelligent mirror capable of recognizing the face of the person in front of her and projecting images of people considered inspirational in the reflection, however, she realized that her own image was invisible to the software facial tracking that I was using. In view of this, she covered her black skin with a white mask and her face was automatically detected by software. This brought him great concern since the facial recognition system is widely used even though it contains algorithms prone to errors and that can have extremely serious consequences for a person. His research revealed the existence of biases in facial analysis algorithms from Amazon, IBM, and Microsoft, where the services frequently viewed dark-skinned women as men, but made few similar mistakes on fair-skinned men. Source: Documentary “The Network Dilemma” available on Netflix.

¹ If any AI has been trained, for example, with materials that eventually contain preconceptuous and homophobic texts, speech, and images, will it not provide data and information in this regard? Does AI know how to identify and eliminate data that is biased, racist, and homophobic? If AI cannot eliminate any data that is biased, does it know, at least, that it should not use this type of material when fulfilling the command given to it by a human being, such as the creation of an image that will serve in an advertising campaign portraying the most beautiful person in the world wearing clothes from a certain brand? Will this image be of a black or indigenous person, or will your unconscious bias consider only white people? Source: BRAZIL, FEDERAL SENATE. Available in: https://www2.senado.leg.br/bdsf/bitstream/handle/id/599393/Inteligencia_artificial_vies_racista_preconceituoso.pdf?sequence=1&isAllowed=y#:~:text=Um%20achado%20perturbador%20foi%20o,como%20sendo%20um%20rosto%20humano. Accessed on: 15.07.2024.

¹ According to a study carried out at the 53rd World Economic Forum, although a reduction in jobs and activities that can be performed by machines is expected, there is a tendency for the number of professions created by new technologies to exceed this decline. According to the “Report on the Future of Jobs 2023: Up to a quarter of jobs are expected to change in the next five years”, the functions that will decline the fastest, due to the use of technology and digitalization, will be administrative or secretarial functions, including bank tellers, cashiers, and data entry employees. Available in: https://www3.weforum.org/docs/WEF_Future_of_Jobs_2023_News_Release_Pt_BR.pdf. Accessed on 23/07/2024.