AI at Work: What You Need to Know About Bias, Privacy, and Your Rights

Artificial intelligence is no longer a futuristic concept in the workplace. From resume screening to real-time productivity tracking, employers are increasingly using AI tools to make decisions about hiring, evaluations, and even promotions. While these systems promise efficiency, they also introduce real risks around bias, privacy, and legal accountability. If you’re an employee, understanding how AI is being used at your workplace—and what you can do about it—is becoming essential.

What’s happening

The legal and regulatory landscape around workplace AI is shifting quickly. In late May 2026, California Governor Gavin Newsom signed an executive order focused on confronting the economic impacts of AI. The order signals that state leaders are paying attention to how AI affects workers, though specific rules are still in development.

Meanwhile, courts are grappling with new questions about AI. For example, a recent lawsuit is pushing the boundaries of how AI fits into existing litigation frameworks—potentially opening the door to a wave of similar cases. Another emerging issue: whether conversations with AI systems are protected by attorney-client privilege or work-product doctrine. So far, courts are split, which adds uncertainty for employees who might use AI for work-related legal advice.

Lawsuits alleging bias in AI-driven hiring and performance reviews are also increasing. These cases argue that algorithms can replicate or amplify human prejudice—for instance, by favoring certain demographics or penalizing others based on flawed data. The results of these cases could shape how companies are allowed to use AI in personnel decisions.

Why it matters to you

If your employer uses AI, your personal data is likely being collected and analyzed more than you realize. Productivity monitoring software can track keystrokes, mouse movements, and even facial expressions. Hiring platforms may score applicants based on patterns that are opaque and rarely disclosed. Without transparency, it’s hard to know whether an AI system is fair—or even accurate.

Bias is a serious concern. A hiring algorithm trained on past successful hires might learn patterns that exclude qualified candidates from underrepresented groups. Performance evaluation tools can penalize workers who deviate from a “typical” work style. And because these systems are often proprietary, employees have limited means to challenge their conclusions.

From a legal perspective, your rights are still being defined. The California executive order and the ongoing lawsuits suggest that regulators and courts are trying to catch up with the technology. But for now, protections vary by state and are often unclear. That makes it crucial to stay informed and proactive.

What you can do

You don’t have to be a tech expert to take meaningful steps. Here are a few practical actions:

  • Ask your HR department what AI tools are used in hiring, performance reviews, or monitoring. Request a clear explanation of how the system works and what data it collects. Many employers will share this if asked.
  • Review your employee handbook for policies on surveillance, data collection, and AI usage. Look for statements about transparency and fairness.
  • Check your privacy settings on workplace devices and accounts. You may be able to limit data sharing or opt out of certain monitoring features—though not always.
  • Be aware of bias indicators. If you notice patterns in hiring or evaluations that seem inconsistent or unfair, document them. You can raise concerns with HR or, if necessary, consult an employment attorney.
  • Know your local laws. Some states and cities have begun regulating employer use of AI. For example, New York City requires bias audits for automated hiring tools. Check if your jurisdiction has similar rules.

Uncertainty remains about how far protections extend. But being aware of the risks and asking questions puts you in a stronger position to advocate for fair treatment.

Sources

  • CDF Labor Law LLP. “Governor Newsom Signs Executive Order To Confront Economic Impacts of AI.” May 29, 2026.
  • CDF Labor Law LLP. “AI Lawsuit Pushes the Boundaries of AI Litigation—and May Signal a New Wave.” April 15, 2026.
  • CDF Labor Law LLP. “Are AI Chats Privileged? Courts Split on Attorney-Client and Work-Product Protection.” April 2, 2026.
  • CDF Labor Law LLP. “AI and the Work-Product Doctrine: A New Frontier.” April 1, 2026.
  • JD Supra. “AI in the Workplace: Managing Bias, Privacy and Legal Risk.” June 4, 2026.