Netherlands: What Can the Works Council Do with AI?

Some see it as just hype, others dream of an automated future, and still others warn of humanity’s downfall. Regardless of who is right, artificial intelligence is here to stay. Businesses, governments, and legislators are actively exploring AI’s opportunities and challenges in and beyond the corporate world. This raises the question: What can and should the works council do with AI?

What Do We Mean by AI?

“AI” refers to technology that recognizes patterns in data and makes decisions based on them. This is achieved through algorithms that can adapt and improve themselves. Companies use AI in various ways: for example, think of chatbots handling frequently asked questions in customer service, software optimizing inventory management in logistics, or image recognition systems ensuring quality control in production. Other well-known applications include text-generating tools such as ChatGPT and Copilot for drafting emails, reports, and meeting minutes. AI can accelerate and automate processes but also raises questions about costs, dependency, privacy, and proper implementation within an organization.

AI and the Works Council

What can the works council do with AI? First, AI can be a valuable tool for daily works council activities. Need to find new candidates for the upcoming works council elections or inform staff via a newsletter? AI can quickly generate a compelling draft, and translation into another language is effortless. This can save significant time.

AI can also be useful in handling advisory requests and requests for consent, benefiting both management and the works council. AI can assist in drafting an advisory request or analyzing one to identify key points. Additionally, when the works council receives documents based on its right to information, AI can help process and interpret the content.

However, caution is required: Under Article 20 of the Dutch Works Councils Act (WOR), the works council is bound by confidentiality. This applies not only to explicitly designated confidential information but also to trade secrets and any data that the works council understands, or should understand, to be confidential. Employers and works councils should establish clear agreements on AI use concerning confidentiality. Uploading trade secrets or sensitive personal data into an AI tool without knowing how the information is processed must be strictly avoided.

Advisory and Consent Rights on AI Implementation

Does the works council have a say in AI implementation within the organization? In many cases, yes. Here are some examples:

• Significant technological provisions: The introduction or modification of a “significant technological provision” requires the works council’s advice. “Significant” means it must be an exceptional decision. For instance, if a company decides to automate certain tasks with AI instead of performing them manually, the works council may have advisory rights.
• Major organizational changes: The above may also lead to an organizational change that requires advice. If employees are laid off due to automation and/or new roles emerge because of automation, this could qualify as a significant organizational change.
• Engagement of external experts: A commonly overlooked advisory right involves hiring an external expert for topics requiring works council advice under the WOR. The works council must first be consulted on the engagement and selection of the expert. It may be relevant to check whether the expert uses AI, for example, in providing advice on a reorganization.
• Employee monitoring: If the organization wants to deploy an AI tool to monitor employee behavior, attendance, or performance, this requires works council consent. Even if monitoring is not the intended purpose, the mere possibility is sufficient to trigger the consent requirement. The protection of employee personal data may be a key concern for the works council in such cases.
• Employee training: Training policies also fall under works council consent rights. The AI Act includes rules requiring organizations working with AI to ensure their employees are “AI-literate.” If the organization introduces a new training policy to meet these requirements, it may require works council approval.

In short, AI impacts various areas where the works council can influence decision-making. And if the works council feels things are not progressing fast enough? It can take the initiative itself by making proposals under its right of initiative.

Michelle Westhoeve is an attorney with Ploum in Rotterdam, Netherlands. © 2025 Ploum. All rights reserved. Reposted with permission of Lexology.