Poor AI use is a people problem

New research and insights are signalling that the risks associated with professional AI use are less about the technology’s capacity and more about how organisations use it.

Poor AI practices, behaviours and organisational culture are having strong productivity, reputational and legal consequences.

While HR often leads AI transformation in workplaces, and law firms more often rely on specialists and strategists, both professions continue to grapple with balancing time savings with quality and managing accountability.

Recent Thomson Reuters research found that FY2025–26 technology spend per qualified fee-earner rose 9.2 per cent, while knowledge management spend rose 5.4 per cent, meaning the opportunity for AI leaders to finesse organisational and firm AI use is now.

Speaking to HR Leader, Lara Yaager, regional vice president of HR at Thomson Reuters, said that the AI-era necessitates a culture that supports true technological transformation.

Finding that “poor” AI use is showing up in low usage or adoption rates, with accordingly low support, training, or wider organisational systems and practices, she said that many employees are turning to their own knowledge base to achieve results.

“Our recent ‘Future of Professionals’ report found that more than a third of employees are using ‘shadow AI’. This means that they are using AI tools that haven’t been sanctioned or approved by their organisation, which can introduce huge risk,” Yaager said.

“Secondly, the report found that 35 per cent of professionals say that their day-to-day practices aren’t adding up to their organisation’s stated AI strategy.”

When organisations and firms fail to move their AI strategy from paper to practice and avoid consulting with their employees, they risk operational, financial, legal, and competitive hazards,

Thomson Reuters Asia and emerging markets managing director Vishal Bali told HR Leader that, while time may be the initial impact of poor AI use, the impacts go much further, showing up in “inaccuracies and the added complexity of doing and redoing the work”.

For law firms, key risks include verifiable AI-generated citations, lawyer AI-literacy deficiencies and digital-redaction risks, making the challenge of how to retain efficiency gains while preserving source verification, confidentiality and professional oversight.

Noting that legal professionals, especially, are increasingly experiencing a surge in cross-border research, Bali said that workers are having to pull sources from several jurisdictions and reconcile them by hand, “with no guarantee that any of them meet a professional standard”.

Bali added: “Australian lawyers aren’t short of AI. They’re short of AI built for professional work.”

Broadly speaking, organisations that improperly use AI can experience disciplinary action, financial liability, and implications for reputation and client relationships.

For HR to best lead AI adoption in a way that makes it seamless and safe for organisations to use, Yaager said it is crucial to remain anchored in trust and communication. In practice, this looks like clearly identifying, communicating and enabling the following of ethical standards and guardrails before scaling AI adoption, and ensuring the frameworks are understood as concrete to an organisation’s identity, rather than just a recommended policy or process.

Yaager also noted the importance of keeping people at the heart of the change.

“Engaging teams through the change is key, and this can only be done when there is a vision, a clear pathway and understanding of where we are going and, most importantly, why,” she said.

“Leaders who bring their teams on the journey create the right environmental conditions, and most critically, can lead through ambiguity and continue to adapt, are those [who] succeed.”

Noting that HR leaders have access to more data and insights than ever before, Yaager said leaders are responsible for providing the right signals so employees can execute their tasks as efficiently and effectively as possible, including having the confidence to speak up when things aren’t working.

“HR holds a privileged position to be the trusted advisors to our leaders. The art of picking up the ‘right’ signals, knowing the metrics that matter and the outcomes to measure are crucial in supporting any transformation, especially one at scale,” Yaager said.

“Nothing is sitting still, and if your organisation isn’t moving fast and bringing people on the journey, you’ve already been left behind.”

Bali said: “AI is only useful if you’re willing to put your name to what it produces.”

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