Algorithmic management at work - a BusinessEurope policy orientation note

Executive summary

The introduction of algorithmic management in the workplace will pose unprecedented possibilities as well as new challenges for both European employers and employees. Proportionate, meaningful and appropriate action to increase transparency will therefore need to be taken in order to achieve more trust in this new phenomenon. However, considering the existing regulations on or related to AI, the lack of consistent and robust data across different sectors, and the low uptake of algorithmic management in traditional workplaces, BusinessEurope poses in this note that any initiative at EU level will need to be assessed carefully and should not take the form of new European legislation. On the contrary, any potential initiative related to algorithmic managements should be aimed at helping companies to mitigate its risks and harness its potential as well as avoid creating legislative red tape. BusinessEurope therefore calls upon the Commission to leave the space needed for companies to develop responsible and ethical approaches to working with AI technologies and for workers to use these technologies to focus on upskilling. In this respect, the Commission should also take into account the actions that social partners take at European, national and company level to meet the challenges of introducing algorithmic management in the workplace. Finally, BusinessEurope underlines that the best way forward could be to open up a discussion with the inclusion of the social partners on a code of ethical principles that can be adapted over time, offering clear guidelines as uncertainty surrounding regulations hinders firms from adopting and utilising AI technologies.