What if your boss was an algorithm? Economic incentives, legal challenges, and the rise of artificial intelligence at work

Abstract

Rapid advancements in automation will have a profound impact on labour markets. This paper focuses on a comparatively overlooked aspect of debates surrounding automation and the future of work: the rise of algorithmic management, enabled by hitherto infeasible forms of data collection and processing. As AI-driven decision-making is quickly becoming an important element of most employer functions, from hiring workers through to daily performance monitoring, received models of the legal regulation of employment relationships are faced with complex challenges – some of which, such as the rules of privacy and data protection, can be addressed through the careful adaptation and development of existing standards, whereas others, including notably management accountability for key workplace decision, may require a fundamental rethink of existing norms

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