AI & Labor Relations Law

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The integration of Artificial Intelligence into human resources is fundamentally altering labor relations, introducing powerful tools for hiring and performance management while creating significant legal challenges for employers in Georgia. The use of AI in the workplace, from automated resume screening to employee productivity monitoring, requires a careful and proactive approach to legal compliance. At Legal Sandbox Georgia, we provide specialized legal counsel on the intersection of AI and labor law, helping your business implement innovative technologies responsibly and ethically while upholding the rights of your workforce in strict accordance with the Labor Code of Georgia.

While Georgia has yet to enact specific legislation for AI in employment, the existing legal framework provides a robust set of rules that govern its use. The Law of Georgia on Personal Data Protection imposes stringent requirements on the processing of employee data, which is central to most HR-related AI applications. Any form of employee monitoring must be justified by a legitimate legal basis, be proportionate to its goal, and be conducted with full transparency. Covert surveillance is strictly prohibited. Our legal team conducts comprehensive audits of your AI-driven HR systems to ensure they align with these data protection principles and respect employee privacy rights.

A primary legal risk associated with AI in the workplace is the potential for algorithmic bias and discrimination. Georgian anti-discrimination laws, which prohibit unfair treatment based on a range of protected characteristics, apply unequivocally to decisions made or influenced by automated systems. An employer cannot deflect liability for a discriminatory outcome by attributing the decision to an AI tool. We help businesses mitigate this risk by conducting thorough impact assessments of their AI systems to identify and correct potential biases, ensuring that all recruitment, promotion, and termination processes remain fair, equitable, and legally defensible.

As Georgia continues its path toward European integration, the principles of upcoming regulations like the EU AI Act will become increasingly influential. This landmark regulation classifies AI systems used in employment and recruitment as "high-risk," demanding rigorous standards for transparency, human oversight, and accuracy. Adopting these best practices now is a strategic imperative for any forward-thinking Georgian company. Legal Sandbox Georgia provides proactive legal guidance, helping you build a sophisticated AI governance framework that not only complies with current Georgian law but also anticipates future regulatory standards, creating a workplace that is innovative, fair, and resilient.

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