23/02/2026
Quick question for any business owner or manager reading this: do you know exactly how AI is being used by your employees right now? Not in theory or what it says in your policy, but actually day-to-day. Do your policies and processes accurately reflect this? Because while AI is fantastic at automating tasks, it still requires monitoring and considered usage. 👇
Is anyone actually fact-checking the output? AI systems hallucinate; they present incorrect information, fabricate statistics and broken links with complete confidence. If your team is using AI to draft policies, analyse your workforce metrics or research employment law, is anyone verifying what comes back before it's acted on?
Are your employees using free versions? Free AI tools are typically trained on the data you input. That means confidential employee information, salary data, disciplinary records or business strategy could be feeding a third-party model. Do your people know this? Is there a clear policy on what can and cannot be entered?
And a key one - is anyone actually monitoring whether your AI tools are actually working? This one is often overlooked. For example, if you're using an AI-powered ATS to sift CVs, who is checking your recruitment metrics? Are qualified candidates being screened out? Could the system be embedding bias into your hiring without anyone noticing? The tool being automated doesn't mean the oversight can be.
The Data (Use and Access) Act 2025 came into force on 5 February 2026. While AI and automated decision making tools are encouraged, there is still a requirement for human oversight, where it comes to ‘significant decisions’. The Act introduces some safeguards that employers should be aware of. Individuals must be provided with information about any significant decisions taken in relation to them based solely on ADM, may contest a decision to use ADM in respect of them and have a right to require the controller to have a human involved in the decision. To ensure compliance, make sure you have a Data Protection Impact Assessment (DPIA), and ensure transparency around when human oversight kicks in and how decisions are made.
At Saltwater HR, we specialise in reviewing HR policies and processes to identify gaps before they become problems. AI governance is just one of the areas where we're increasingly finding those gaps exist. If you're not sure where your business stands, it's worth finding out before something goes wrong.