As AI becomes more integrated into day-to-day business, Emond Harnden LLP says employers must navigate the legal, ethical and operational risks that come with its use
When an Air Canada chatbot gave a customer incorrect information about the airline’s bereavement fare policy, the airline learned an important lesson about AI: Businesses may be held responsible when the technology they deploy gets it wrong.
The customer relied on the chatbot’s advice, purchased his ticket and later discovered the information was inaccurate. Air Canada argued it shouldn’t be liable for the chatbot’s mistake, but the B.C. Civil Resolution Tribunal disagreed and ordered the airline to compensate the customer.
“The fact that something is well-written and sounds factual doesn’t mean the information is accurate,” says Jordon White, a labour and employment lawyer with Emond Harnden LLP. “As organizations continue to use AI to draft emails to clients, respond to customer complaints, or assist with human resources matters, we’re going to see more liability issues emerge.”
For employers, the lesson is clear: AI may be a powerful workplace tool, but responsibility still rests with the people and organizations using it.
AI is reshaping workplace disputes and privacy risks
The risks extend to internal workplace disputes. White says lawyers are increasingly encountering employees using AI to help prepare complaints, grievances and legal documents.
“We are seeing more self-represented individuals using AI to obtain legal information, ask questions about workplace disputes and draft responses to their employers,” he says.
For employers, this can create additional work and complexity when responding to allegations that may have been generated or shaped by AI.
AI also raises significant privacy concerns. Consider an AI agent designed to transcribe conversations between doctors and their patients. If the doctor tasks the agent with sending out summaries to patients, the agent can act autonomously with no safeguards as to the accuracy of the summaries or even that the summaries are going to the right people.
Three practical steps for managing AI in the workplace
White recommends three practical steps for businesses adopting AI.
“First and foremost, I would recommend that employers establish clear expectations about how AI should and should not be used for their specific organization,” says White.
Second, businesses need to stay informed about legislative developments. “Ontario, for example, introduced new requirements under amendments to the Employment Standards Act, 2000 that took effect on Jan. 1 and require employers to disclose the use of AI in certain hiring processes,” White adds.
Third, employers need to understand the privacy and data security risks associated with AI. “It’s critical that employers understand the tools they’re using, how they work and whether confidential information entered into them remains private,” says White.
Employers should expect the regulatory landscape to continue evolving. For organizations in federally regulated sectors, staying informed will be critical as the rules around AI continue to develop.
For a deeper look into AI in the workplace, you can watch the OBJ webinar: Navigating AI in the Canadian Employment Landscape: Risks, Responsibilities, and Best Practices with Jordon White of Emond Harnden LLP.
