Work Related: AI Regulation in the Employment Law Context

In today’s episode, associate editor Jay Fort considers the rapid development and implementation of Artificial Intelligence and automation technology across industry. By the end of 2025, an AI Arms Race was in full swing. An explosion in Artificial Intelligence (AI) development and automation is taking the U.S. and global economic systems by storm. Companies like Nvidia (the first company to reach an approximately 5 trillion valuation), Microsoft, Alphabet (Google), and Open AI (formerly a non-profit which still cites the common good as a core tenant of its charter) have kicked off what is widely understood to be an AI "Arms Race." Investors- from venture capitalists to private equity behemoths- continue to pour billions of dollars into AI technology companies and associated ventures. As AI companies move from beta testing to widespread adoption and integration, debates on AI transparency, accountability, and regulation have risen to the forefront. As a result of this monumental shift and ongoing uncertainty, the necessity of properly understanding (and regulating) AI and automation technology is now more pressing than ever before. Further, the need for strong regulatory oversight- including a broad regulatory consensus, clear guidance, a baseline code of ethics (at minimum), as well as strong federal and state regulation- is a pressing regulatory necessity and, possibly the pivotal decision of our time. Ultimately, rather than a one-size-fits-all approach, this emergent AI era requires an all-hands-on-deck mindset. In terms of generally advisable principles, government, business, private and public sector leaders can take proactive steps to protect an organization from AI related employment liability. First, regularly auditing an organization’s AI tools and use, proactively searching for any potential gaps or problems closer to point of inception. Second, implementing clear and effective training for HR and other stakeholders, ensuring understanding of applicable federal and state regulations and potential compliance risk. Third, maintaining human oversight as a guardrail and backstop against issues like algorithmic bias, hallucinations, etc. Fourth, staying informed- ensuring that leadership understands AI tools, policies, implementation, and application of assessment in order to effectively understand AI models, manage their use, reduce risks, and avoid unnecessary costs. Although far from exhaustive, these are steps on the path to a dynamic, strategic approach to AI governance and regulatory sustainability in the employment and hiring process, no doubt a necessity of today and the days ahead. If you're interested in this week's topic, please check out these resources: https://ogletree.com/insights-resources/blog-posts/the-intersection-of-artificial-intelligence-and-employment- https://www.employmentlawinsights.com/2025/04/to-ai-or-not-to-ai-the-use-of-ai-in-employment-decisions/ https://www.hrdefenseblog.com/2025/11/ai-in-hiring-emerging-legal-developments-and-compliance-guidance-for-2026/ https://www.jacksonlewis.com/insights/year-ahead-2025-tech-talk-ai-regulations- https://www.hklaw.com/en/insights/publications/2025/03/artificial-intelligence-in-hiring-diverging-federal-state- https://www.employmentlawinsights.com/2025/04/to-ai-or-not-to-ai-the-use-of-ai-in-employment- https://www.theguardian.com/us-news/2025/jun/30/disabled-amazon-workers-discrimination