Balancing AI regulation with trust

Now that AI has become more commonplace in professional settings, workplaces are discovering the need to move beyond policing to employee education and mutual transparency.

Organisations face a defining choice between overbearing management and employee empowerment.

In what is a crucial point in professional technology adoption, whereby many companies have some form of AI policy, the focus now turns to refining regulation and developing the culture that AI necessitates, one that avoids secrecy, doubt, or confusion.

According to SKG Services group HR, people and culture general manager Julie Statevski, many employees still hide parts of their AI use – not to deceive or abuse the technology, but due to a lack of clarity amid increasing productivity demands.

In this way, organisations face issues not because employees are using AI wrongfully, but because they fear retribution or even losing access to certain tools. And despite the federal government’s intention to build a national AI framework, which is anticipated to clarify the nature of organisational AI regulation, Statevski said: “It’s a shared responsibility.”

“Governments need to provide regulatory guidance, but organisations can’t wait for legislation. Employers should have clear AI policies, governance and training that reflect their business risk profile.”

AI misuse can pose significant risks to companies.

As recently reported by HR Leader’s sister brand, Cyber Daily, PagerDuty research found that 40 per cent of surveyed professionals from around the globe had uploaded customer data to public AI tools, and 28 per cent entered confidential company data or financial information to a generative AI (GenAI) platform.

Further, 36 per cent of Australian workers hid AI use from their employer.

According to Statevski, the best way to address these findings is to “create a culture of education, not fear”.

“Good AI policies should focus on responsible use, protecting confidential information, privacy, human oversight, transparency [and] cyber security” as well as employee accountability for the work they produce.

And in light of the latest PagerDuty revealing that a staggering 70 per cent of office professionals had used AI despite believing it went against company policy, the creation of this culture cannot come fast enough.

Statevski said: “Employees should understand when AI is appropriate, know the boundaries, and feel comfortable asking questions without concern about being criticised.”

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