AI in the workplace: pros and cons every UK business should know

Posted 6 days ago

There’s no dispute that Artificial Intelligence (AI) is quickly becoming an integral part of how we streamline processes in business. From chatbots that handle customer service queries to algorithms that help HR teams screen CVs, AI is transforming the way many organisations operate.

However, while AI brings exciting opportunities, it also raises serious questions about fairness, transparency, accountability and the ethical use of data. Responsible adoption is not just about increasing productivity; it’s about making sure that AI is used in an ethical way.

In this blog, we’ll explore the key benefits and drawbacks of using AI in the workplace. We’ll look at real examples of how it’s already being used and share practical steps to help businesses adopt AI responsibly.

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How is AI used in the workplace?

AI is often talked about as something that’s futuristic, but in reality, many of its applications in the workplace are really quite straightforward.

For example, AI is increasingly used to handle administration and operations tasks. This can include automating repetitive processes like scheduling meetings, processing invoices or entering data. The NHS has even tested AI systems to reduce administrative burdens on its staff. It’s also led to health professionals being able to spend 25 per cent more of their time interacting with patients.*

AI also plays a growing role in customer service. Chatbots and virtual assistants can answer frequently asked questions and reduce waiting times in call centres, which helps improve customer satisfaction.

In human resources (HR), AI-powered tools can screen CVs, shortlist candidates and even use predictive analytics to highlight employees who may be at risk of leaving.

Businesses are also using AI for compliance and risk management. AI can scan huge amounts of data to detect potential UK GDPR breaches, fraud or other risks quicker than us mere mortals ever could.

Finally, AI is becoming more common in creative and communication tasks. Tools powered by generative AI can write exceptional marketing copy, create reports or design presentations in minutes, which saves considerable amounts of time and boosts productivity.

Benefits of AI in the workplace

When implemented properly, AI in the workplace can offer huge benefits to businesses of all sizes.

One of the most well-known benefits is improved efficiency and productivity. Automating tedious, repetitive tasks allows employees to focus on work that will always require human judgement and creativity. According to Codepaper, AI drives 40% faster operations** – which is music to any business owners’ ears!

AI also supports data-driven decision-making. By analysing patterns and trends at high speed, AI can give managers the insights they need to make better decisions more quickly.

Another major benefit is enhanced customer experience. AI-powered chatbots can offer 24/7 support and reduce waiting times, which leads to happier customers.

AI can also help reduce costs, as automating tasks reduces the need for manual labour and lowers the risk of human error.

Finally, in some cases, AI can even help reduce unconscious bias. For example, anonymised CV screening tools can help hiring managers focus on skills and experience rather than personal characteristics, which promotes fairer recruitment decisions.

Risks and challenges of AI at work

Despite its many benefits, there are risks associated with AI that businesses need to consider.

One of the biggest concerns is job displacement and deskilling. If AI takes over too many tasks, some roles could disappear, and staff may lose opportunities to develop new skills – which is exactly the opposite of what we try and achieve here at iHasco.

There is also a risk of bias and discrimination if AI systems are trained on biased data. For example, an algorithm used to screen CVs could unintentionally favour or exclude certain groups of people. This creates ethical concerns around fairness and equal opportunities.

Data protection and privacy are another major concern. AI systems can process vast amounts of personal data, which increases the risk of UK GDPR breaches if that data is not handled correctly.

Businesses must also navigate regulatory challenges, as governments bring in new rules around AI use, such as the EU AI Act, which affects UK businesses that trade within the EU.

Finally, there are security and intellectual property risks to consider. AI tools can sometimes leak sensitive information or use copyrighted content without permission, which creates potential legal and reputational risks.

AI in HR: pros and cons

AI is increasingly used in HR, and while it brings some clear advantages, it also introduces significant challenges.

On the positive side, AI can make recruitment faster and more efficient by quickly screening and shortlisting candidates. Predictive analytics can help HR teams spot employees who might be at risk of leaving, allowing them to take action early. AI can also save time on routine administrative tasks, such as approving holidays or scheduling training.

However, there are also serious risks. AI systems used in recruitment can unintentionally build in bias or lack transparency, which can lead to unfair outcomes. There are also privacy concerns around employee monitoring software, and questions about accountability. For example, who is legally responsible if an AI system makes a discriminatory hiring decision? HR teams also need to make sure that their use of AI complies with UK employment law and data protection regulations such as UK GDPR.

Best practices for responsible AI adoption

To get the benefits of AI while reducing the risks, businesses need to adopt it responsibly. A good way to do this is to follow a clear framework.

First, you should set clear guidance and policies that define how and where AI will be used.

Second, make sure to provide staff training so that employees understand how to use AI tools safely, securely and ethically.

Thirdly, it’s important to monitor AI tools continuously, regularly reviewing their outcomes and updating them as needed.

Fourth, ethical principles such as fairness, accountability, transparency and explainability should be embedded into all AI projects.

Finally, you should make sure your business stays compliant with regulations like the UK GDPR and the EU AI Act.

Conclusion and next steps

It’s no secret that AI is offering exciting opportunities to increase productivity, cut costs and improve decision-making. At the same time, it brings risks around bias, data protection, regulation and ethics.

The best way for businesses to move forward is to take a responsible approach to AI adoption. With clear ethical frameworks and proper staff training, organisations can harness the benefits of AI while protecting their people, customers and reputation.

FAQs

What are the main benefits of using AI at work?
AI can boost productivity, reduce repetitive tasks, support data-driven decisions, cut costs and improve customer experience.

What are the biggest risks of workplace AI?
The main risks include bias, job displacement, data protection breaches, regulatory challenges and security issues.

How is AI used in HR?
AI can help with CV screening, predictive analytics for retention, and automating administrative tasks, but it must be used carefully to avoid bias and stay compliant with UK law.

How can businesses adopt AI responsibly?
They can do this by setting governance policies, providing staff training, embedding ethical principles, monitoring AI tools and staying compliant with regulations.

Is AI replacing jobs?
Some roles may be automated, but AI is more likely to change the nature of jobs, creating new opportunities and requiring staff to reskill.

*AI assistant helps NHS staff increase time with patients by almost 25% | The Independent

** AI Automation Services: The Secret to 40% Faster Operations in 2025 | by Codepaper | Medium