AI missteps push firms to tighten controls, update job contracts

Top consulting firm Deloitte found itself in an awkward situation this week, after it was found that a major workforce report it prepared for the Canadian government allegedly contained AI errors. “We have helped several clients draft AI-usage clauses, and in many cases, the conversation starts even before the drafting stage. Depending on the nature of the company, the industry, and the kind of work employees perform, we often recommend that such clauses be included in employment agreements,” said Yajas Setlur, Partner at JSA Advocates & Solicitors. For example, companies that develop or deploy customised or bespoke software or build tools for other businesses must ensure that employees are not using restricted AI tools, which can create significant liability not only for the employer but also downstream for the client using the final product. These are exactly the kinds of risks companies are trying to address, Setlur added. Read more