Artificial intelligence is evolving rapidly, and as an employer, staying ahead of the curve is essential. While New Zealand currently has no legislation specifically governing workplace AI, it will inevitably intersect with existing law – and the courts will follow. The time to act is now.

Start with a clear AI policy

A well-crafted AI policy is your first line of defence. It should cover:

• Permitted platforms
  Define which AI tools employees may use, backed by documented risk assessments that are reviewed regularly.
• Best practice guidelines
  Show employees how to get the most out of AI while keeping business and client information secure. Confidential data should never be entered into open AI platforms.
• Training
  Provide access to AI training and make it easy for employees to request more if they need it.
• Misuse and consequences
  Be explicit about what constitutes misuse and the disciplinary consequences that follow.
• Client transparency
  Update your client-facing documents to reflect your use of AI and your commitment to compliance with the Privacy Act 2020.

Consult staff on a draft policy, genuinely consider their feedback, and communicate the final version clearly. AI moves fast – review your policy often and stay open to change. Strong confidentiality and privacy clauses in employment agreements will reinforce it further.

Take breaches seriously

Once information enters an open AI platform, you lose control of it. Any suspected breach of confidentiality or AI misuse warrants prompt investigation, immediate damage mitigation, and if appropriate – disciplinary action.

AI also introduces a new complication in internal investigations: deepfakes. False images and fabricated texts are increasingly convincing, so always trace evidence back to its original source before drawing conclusions.

Treat employees fairly

If AI tools and training are available to some employees but not others, you may be exposed to personal grievance claims for unjustified disadvantage. Ensure equal access and opportunity across your workforce. Similarly, be cautious about disciplining or dismissing employees for a lack of AI proficiency – the responsibility to provide adequate training may rest with you.

Recruitment carries real risk

AI has transformed recruitment, dramatically reducing administrative burden. But it doesn’t share our ability to consciously check for bias. AI can replicate discriminatory patterns from its training data, and as the employer, you are accountable for those outcomes – whether in the Employment Court or before the Human Rights Tribunal. Ensure human oversight is applied to all AI-assisted recruitment decisions, and document your awareness of the risks and the steps you’ve taken to address them.

Key takeaways

• There is no AI-specific law in New Zealand (yet), but existing legal obligations still apply.
• Implement a clear, practical AI policy, supported by training and communication.
• Take a consistent and fair approach to access, training, and use of AI tools.
• Be vigilant around privacy, confidentiality, and evidence integrity.
• Maintain human oversight, particularly in high-risk areas like recruitment and disciplinary processes.

With AI in the workplace, the more proactive you are, the better positioned your business will be to benefit from it safely and legally. Get in touch with the team at Copeland McAllister – we can help you manage the risks and make the most of what AI has to offer.

Need help? If you would like assistance with a legally-sound AI policy, get in touch with our team. Email admin@cmalaw.co.nz or phone 03 211 0153.

Disclaimer: This update provides commentary on employment law, health and safety and immigration topics, it should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice from your lawyer for any questions specific to your workplace.