As professionals find new uses for AI tools, employment attorneys are urging HR professionals to be sure to deliver layoff news with human oversight.
Bradford Newman, an attorney with Eversheds Sutherland in Silicon Valley, Calif., said that given the rapid-fire adoption of AI, and how “most corporations are using AI to prepare drafts of nearly anything,” he expects some companies are already letting programs like ChatGPT help them craft layoff announcements.
Newman said that there will “be some very hard-learned lessons if AI is used incorrectly” given the potential privacy, compliance, and reputational risks that could stem from using AI alone.
AI+HI in Layoffs
Relying on AI solely in this process would create “a high probability something is going to go in a layoff notice that probably shouldn’t, or isn’t in compliance, which is why you need a human in the chain,” Newman said.
AI cannot be trusted alone to keep firms in compliance with the intricate quilt of local and national laws governing employment decisions, or to provide the appropriate level of sensitivity to those impacted, he added.
While it’s understandable that some leaders might feel compelled to run layoff language past AI, “it should not be responsible for communicating life-changing news,” according to Mary Kathryn King, senior attorney and human resources consultant at Engage PEO in Fort Lauderdale, Fla.
Experienced HR professionals should handle that task with sensitivity, as “there is no substitute for their good judgment, empathy, and real-world training when communicating a layoff.”
Using the technology sloppily “can turn a short-term setback into a long-term crisis,” according to King, who pointed to the risk of lawsuits, social media backlash, and “warnings to others to avoid the company.”
“It’s natural to struggle to find the right words when sharing a layoff decision,” King said. But one of the biggest risks of AI is that “its first priority is to make you happy, not to make you compliant,” she said, adding that, “in its eagerness to please, AI may use language that causes problems later.”
For example, to soften the blow of a lost role, AI might include commonly used language stating “that the decision has nothing to do with performance, when this is not correct,” she explained. “If an employee later challenges a layoff decision, inconsistent messaging generated by AI can weaken an employer’s position in court.”
AI can assist with brainstorming or early drafts, King acknowledged, but it’s not advisable to outsource the entire “high-stakes” communication when “the wrong words can place your company in the spotlight for all the wrong reasons.”
How the News Is Delivered Matters Greatly
When it comes to delivering layoff decisions, research suggests how the news is delivered matters greatly — not only for those on the receiving end, but also for consumers and other stakeholders.
A 2023 study published in the International Journal of Research in Marketing analyzed how layoffs impact brand strength. The study found that the reputational fallout of job cuts lasts somewhere between two and 48 weeks. It concluded that there are “significantly negative cumulative effects of layoff announcements on brand strength over time,” which depend largely on how the company communicates during this time.
The Limits of AI by Itself
Before relying on AI in layoff news, “employers should know its limits,” King emphasized.
The technology may have read all the text on the internet, but “it does not know your industry. It has not worked alongside your colleagues who are being laid off. And employees are quick to spot its use in communications,” she added, noting that unedited AI in layoff news “can come across like a text message breakup: impersonal, uncaring, and cold.”
This could blemish the organization’s standing, not only for those on the receiving end of the layoff, but also with employees the employer hopes to keep, King said.
“When loyal employees receive a sterile, impersonal layoff message written by AI, goodwill quickly disappears,” King said. “Remaining employees may see this too, decide the company does not value them, and decide it’s time to leave.”
Taylor Telford is a freelance writer in Washington, D.C.
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