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New law aims to regulate “artificial intelligence” in the workplace

October 16, 2024, 7:02 p.m

Berlin. Federal Labor Minister Hubertus Heil and Interior Minister Nancy Faeser (both SPD) want to comprehensively re-regulate the use of artificial intelligence in companies and the handling of employee data. The monitoring and tracking of employees, the use of health tests and the use of AI in application processes should therefore only be permitted under certain conditions.



Heil and Faeser’s draft law was sent to the other ministries for a vote on Wednesday, writes the “Süddeutsche Zeitung” in its Thursday edition. “With the law we are creating legal clarity as to whether and how data may be collected and processed. This helps all parties – companies and employees,” Heil told the newspaper.

AI applications are becoming increasingly widespread in the economy. Providers promise that they can predict the success of applicants using AI tests and create a ranking list from thousands of applications “in a matter of minutes”, i.e. effectively make a pre-selection. Computer programs are supposed to recognize who is suitable for which training. The emotional state of employees can even be determined by evaluating the voice.

From 2035 onwards, there will no longer be a job that has nothing to do with AI, says Heil. The planned law is now intended to ensure that innovative use of data is possible and that “intrusive” use is prohibited, as it is said. For example, AI data about the emotional state of employees may not be used.

Heil and Faeser also want to answer other sensitive questions: health tests should only be used in applications if certain qualities are absolutely necessary for the position or are required by law. Comprehensive examinations to determine whether applicants are generally in good health should be excluded. Psychological tests would only be permitted if they meet scientifically recognized standards.

According to the draft, the use of AI in the application process will not be banned across the board, but should be regulated. According to the Ministry of Labor, such procedures should not lead to discriminatory results and must be controllable by the employer. The procedures used must be comprehensible and transparent. In addition, AI should not be used to indirectly derive sensitive information during the application process, for example about origin, sexual identity or trade union membership. Basically, the following applies: What an employer is not allowed to ask in an interview, he is not allowed to find out using AI or profiling.

As a rule, monitoring of employees should only be permitted for a short period of time, on a random basis or for specific reasons. The draft law mentions the prevention or detection of crimes, for example if an employee is suspected of stealing or revealing trade secrets. Private or break rooms should be taboo. “When it comes to video surveillance, there must also be protected retreat areas at work where you can be unobserved,” said Faeser to the SZ. The location and profiling of employees is also permitted depending on the case scenario, for example when it comes to health and safety. However, according to the ministries’ idea, the data should not be used to monitor performance.

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