Artificial Intelligence in the Workplace: Asking the Right Questions

Turn on the news or scroll through your favorite social media app, and you will quickly find countless opinions about Artificial Intelligence (“AI”). From optimism about innovation to concerns about privacy and ethics, viewpoints on AI are varied and evolving.

One thing, however, is certain: AI is here to stay.

For business owners, employers, and professionals across industries and trades, this raises important considerations. While AI presents significant opportunities, it also carries risks that require careful thought. Before jumping headfirst into integrating AI tools into your operations, it is essential to stop and ask: How should I use AI responsibly and legally?

In today's fast-changing landscape, the goal is not only to harness the benefits of AI but to do so with foresight, compliance, and ethical awareness.

Understanding AI: What Are We Talking About?

Before discussing how AI should be used, we must first understand what AI means in a legal context.

In October 2024, California Governor Gavin Newsom signed Assembly Bill 2885 (AB 2885), providing an official legal definition of AI for California agencies and businesses. Under AB 2885, AI is defined as:

"An engineered or machine-based system with varying levels of autonomy that can infer from input to generate outputs that influence physical or virtual environments."

This broad definition includes everything from customer service chatbots to advanced predictive analytics software.

If your business uses a machine-based tool that produces outputs based on data, you are likely interacting with AI — whether you realize it or not.

Understanding this definition is crucial because legal obligations often apply once AI enters the picture.

Should You Use AI in Your Business?

The question isn’t just “Can I use AI?”

The real question is, “Should I use AI in this particular situation?”

AI itself is not inherently good or bad. Like any tool, its value — or danger — lies in how it is used. Some AI applications can dramatically improve productivity, marketing, customer experience, and data analysis. Others, however, can inadvertently expose your business to legal liability, breach customer trust, or create compliance violations if not carefully managed.

When evaluating whether to use AI, business owners and professionals must consider:

• The purpose: Are you using AI for simple tasks like summarizing information or complex decisions like drafting contracts or screening job applicants?
• The data involved: Will AI process confidential information about customers, employees, or business operations?
• The risk level: What could go wrong if the AI gets it wrong? Who would be harmed?

Ultimately, it’s not just about convenience. It's about responsibility.

The Legal Landscape: No Blanket Ban, But Real Risks

Currently, there is no law prohibiting businesses from using AI outright. Across industries — from construction to retail to healthcare — AI is being integrated to streamline operations and improve efficiency.

However, how you use AI matters greatly under existing laws.

Depending on your industry and use case, you could implicate legal areas such as:

• Privacy laws: If you input customer or employee data into an AI system without appropriate consent or safeguards, you could violate privacy regulations like the California Consumer Privacy Act (CCPA) or HIPAA (for health-related businesses).
• Intellectual property rights: AI-generated marketing materials or written content must still respect copyright and trademark laws.
• Employment law: Using AI to screen job candidates or evaluate employee performance may raise concerns about bias, discrimination, or failure to comply with equal employment laws.
• Data security requirements: Information stored or processed by AI platforms must meet applicable cybersecurity standards.

Ignorance of these obligations is not a defense.

Business owners must proactively ensure AI use complies with all applicable legal and regulatory frameworks.

Applying Common Sense to AI Use

Legal compliance is the minimum. Equally important is the application of good business judgment.

For example:

• Using AI to brainstorm marketing ideas may be a low-risk use.

• Using AI to draft legally binding contracts without human review is a high-risk use.

• Uploading confidential client lists, trade secrets, or employee personal information into free or unvetted AI tools is reckless and may lead to severe consequences.

Even when AI use is technically allowed, common sense must prevail.

Professionals should always ask:

• Is this an appropriate task for AI?

• Am I exposing sensitive information?

• Am I relying on AI for something that still requires human expertise or professional judgment?

Building a Responsible Framework for Using AI

To help protect your business while still taking advantage of AI's capabilities, here’s a practical framework to follow:

1. Understand the Rules and Laws Governing AI Use

Before implementing AI in any business process, ensure you understand:

• What happens to any data submitted to the AI tool

• Whether the vendor stores, shares, or reuses your data

• How the AI system’s terms of service align with your privacy and confidentiality obligations

• Industry-specific regulations that apply to your sector

For example, using AI to assist in HR-related tasks (like recruiting or employee reviews) could trigger compliance obligations under the Americans with Disabilities Act (ADA) and anti-discrimination laws.

If you are unsure, consult legal counsel before moving forward.

2. Recognize the Limitations of AI

AI can be powerful — but it is not foolproof.

Some important limitations include:

• ‍"Hallucinations": AI systems sometimes generate entirely fabricated or inaccurate information.‍
• Bias: AI systems trained on biased data may perpetuate discrimination, leading to regulatory violations or reputational damage.‍
• Dependence on input quality: AI will only provide output as good as the data and questions it is given.

Businesses must implement strong quality control measures. No AI-generated output should be blindly trusted without human verification and review.

At the end of the day, if an AI-driven mistake harms a customer, employee, or third party, your business remains responsible.

3. Implement Internal AI Policies and Train Your Team

Employers and managers should not assume that employees will intuitively know the risks of AI use.

You should:

• Develop a clear internal policy about acceptable and unacceptable AI use
• Train employees on the ethical, legal, and practical risks of AI
• Establish review and approval procedures for any AI-generated work product
• Regularly audit AI-related practices to ensure compliance

Without clear guidance, employees could inadvertently compromise sensitive information or violate legal obligations.

In addition, if third-party vendors are using AI on your behalf, their practices should be thoroughly vetted and incorporated into your contracts.

Conclusion: AI Is a Tool, Not a Replacement for Responsibility

Artificial Intelligence offers exciting opportunities, but its use requires serious reflection.

Business owners, employers, and professionals must treat AI as a tool — not as a substitute for sound judgment, legal compliance, or ethical business practices.

Before using AI:

• Understand the laws that govern your industry.
• Recognize AI’s limitations and risks.
• Implement strong policies and employee training to minimize exposure.
• Always apply common sense and human review.

By putting the right guardrails in place, you can use AI to enhance your business — responsibly, ethically, and legally.