Managers Keep AI Within Bounds

In the Netherlands and Europe, managers set clear boundaries on the use of autonomous AI, especially regarding sensitive topics like dismissals and contracts. These decisions remain reserved for humans, as companies predominantly use AI as a tool, and not as a final decision-maker. This approach is driven not only by internal considerations but also by legislation, liability, and employee trust, complying with the European AI regulation and the GDPR.

Most executives are open to AI for routine tasks like reporting and summarizing, but they want to retain control over decisions regarding dismissals and disciplinary actions. This stems from the need for context, empathy, and carefulness in such decisions, as wrongful dismissals carry significant legal risks. Labor law dictates that employers must follow careful processes, and autonomous systems that select employees could violate these obligations.

In contract formation, human oversight is also essential, as mistakes can have serious financial consequences. Although AI assistants like Microsoft 365 Copilot and ChatGPT are useful for generating draft texts and clauses, the ultimate responsibility lies with a lawyer or executive. This ensures that liability remains manageable and that contracts meet the requirements of the eIDAS framework for electronic signatures.

Finally, the European AI regulation (AI Act) has come into force and requires strict controls for high-risk systems such as those used in personnel management starting in 2026. Organizations must ensure human oversight and risk management; otherwise, these AI systems cannot be deployed. All of this underscores the trend of using AI as an assistant while key decisions always remain in human hands. This approach helps prevent errors and bias while enhancing the trust of both employees and clients, all while accelerating work processes.

Read the full article from AI Insider.