Author: Adya Bijenra Kumar Singh Poonam, M.K.E.S College of Law, Mumbai University

Artificial Intelligence (AI) and automation are transforming workplaces globally, promising increased efficiency but also raising serious concerns about job security and labour rights. This Article explores the challenges posed by AI to labour rights, including job displacement, privacy and the need for reskilling workers. It also examines current laws, court rulings in India and international ones, highlighting the gaps in legal protections and emerging judicial trends. The Article will emphasize the importance of transparency and accountability in AI Governance, human oversight over automated decisions and comprehensive policies to support affected workers. Earlier researches suggest that balancing technological innovations India with labour rights protection and inclusive workforce planning is essential for securing the future of work in the era of Artificial intelligence.

KEYWORDS:

Artificial Intelligence, Automation, Job Security, Labour Rights, Reskilling. 

Artificial Intelligence was initially introduced as tools to simplify human tasks, to help increase speed and improve efficiency in work but today the technology has advanced so much that it can take over human tasks completely and do it with more accuracy. Today, Artificial intelligence and automation are transforming the industries, changing the way companies operate and reshaping the kinds of jobs people do. While these advancements boost productivity and create new job opportunities, they also threaten many traditional roles, especially those involving routine and repetitive tasks. These shifts raise important concerns about job security and workers’ rights. These rapid advancements have given rise to various challenges, in adopting AI along with the threats it brings with itself. It is difficult for not only people but even countries to adapt to this change keeping in mind the existing laws, court rulings and policies. As AI continues to transform workplaces, it becomes important to understand how technology and human welfare can advance together, ensuring a future where humans and technology coexist.

Academic researches highlight the contradictory impact AI has in the field of employment. On one hand, Artificial intelligence is really helpful in making work easier and faster, like generating reports or analysis, collecting data etc. It even gives way to creation of new employment opportunities which demand skilled and educated employees ranging from highly technical positions to creative roles such as Data Scientist, AI Engineer, AI Trainer, AI product manager, AI Ethicists, Cybersecurity Analyst etc. While, on the other hand Artificial intelligence can automate repetitive tasks, pushing some workers out of the labour market. Here, Data entry clerks, customer service representatives and other routine administrative roles face high automation risk.

From a legal perspective, scholars argue that existing labour laws fall short in addressing these AI driven workplace transformations. Issues like algorithmic bias, lack of transparency, worker surveillance, uncertain and ambiguous employment status in gig economy platforms remain unsettled. Judicial intervention in some countries like the UK has begun to expand worker protections in AI governed environments, but comprehensive legislation is the need of the time. Policy reviews by the International Labour Organisation and World Economic Forum stress the critical role of workforce reskilling and social protection system to avoid deepening of inequality and social exclusion from adaptation of Artificial intelligence. Yet, gaps remain in practical implementation, especially in countries with large informal labour sectors such as India.

This Article aims to analyse the impact of Artificial intelligence and automation on job security and labour rights, assess the adequacy of existing legal frameworks in protecting workers’ rights and propose actionable recommendations for better governance of the changing landscape of work. 

The methodology includes use of laws and statutes present in India as well as international laws in relation to AI governance and labour rights along with relevant court judgements and policies to provide broader understanding.

Impact of Artificial intelligence and automation on jobs

Artificial intelligence and automation are fundamentally reshaping the global markets, particularly threatening people doing jobs involving repetitive work, manual and cognitive activities. According to the World Economic Forum’s Future of Jobs Report 2025, approximately 92 million jobs worldwide may be displaced by 2030 due to Artificial intelligence and automation, with special high exposure among clerical staff, manufacturing workers and retail employees. We can take example of AI Powered Chatbots , they now handle customer care service queries in large numbers, reducing the demand for human representatives. Tasks which were once assigned and performed by data entry clerks and other back office staff, today are being performed by automated robotic processes.

Although, AI and Automation snatch away jobs and it also creates new opportunities to work. It is estimated that automation would create around 78 million new positions globally by 2030 such as AI System programmers, Cybersecurity experts, AI Engineers, Data Analysts and many more. However, these emerging opportunities demand advanced digital, analytical and problem solving skills, widening the gap between skilled and unskilled workers. Vulnerable groups include low skilled workers, women and older employees as they will face disproportionate risks of unemployment and underemployment. Recent reports have found that women are overrepresented in sectors with high automation risk and younger workers are already experiencing higher joblessness in tech-exposed fields in 2025.

Legal Protection Challenges

Existing labour laws in most of the countries including India do not address the challenges brought by AI adequately. Statutes regulating hiring, termination, wages and conditions were created much before the rise of algorithmic management but today it needs reforms. AI driven automated termination systems can remove workers from employment based solely on data metrics, often without human review or clear avenues for appeal, risking violations of fundamental rights to fair treatment and due process. The gig economy exemplifies these legal gaps. Workers managed via platforms like food delivery and freelance services are classified as independent contractors, thereby excluded from statutory benefits and job security. However, landmark legal cases are the beginning to alter this landscape.

The UK Supreme Court ruling in Uber BV v. Aslam (2021) has set a transformative precedent, the gig economy drivers were as “workers” and not mere contractors, entitling them to the national minimum wage, holiday pay and other legal protections. The Court found Uber exercised significant control over drivers, including work assignment, fare setting and customer rating, a level of oversight comparable to traditional employment, thereby deserving workers protection.

Algorithmic Bias and Worker Privacy

Artificial intelligence systems not only automates tasks but can also unintentionally perpetuate or even boost existing discrimination. For instance, if AI is trained on datasets with historic biases and discrimination, the algorithms might disadvantage certain marginalized groups in hiring and promotions such as favoring resumes with “male” names or penalizing career gaps without context. As AI has become more intrinsic in HR and workplace monitoring, the extensive digital surveillance further intrudes on employee’s privacy, sometimes extended to tracking even minute details like productivity, breaks, location, or communications. The current anti-discrimination and data-protection frameworks are insufficient for these new risks. Many countries lack clear protocols for “explainable AI,” employee consent, or recourse against automated unfair treatment, fueling growing calls for legal reform to ensure transparency and empower affected workers.

The importance of Reskilling and Social safety nets

As the labour market transforms, reskilling and upskilling becomes essential. The Future of Jobs Report 2025 reveals that up to 50% of the workers will require new skills by 2025, largely in advanced digital literacy and complex problem solving. However, accessibility to effective retraining remains limited, particularly for low-income and aged workers. Reports also indicate that 77% of newly emerging AI jobs require advanced degrees, presenting additional barriers for displaced employees. To navigate these challenges, both governments and companies must invest in comprehensive skill training programs in order to get a sufficient amount of skilled workers such that no one is left behind. Enhanced social safety plans such as unemployment insurance, transitional income support and active labour market policies have become equally vital to ease the transition, avoid social instability, and create a pathway to more inclusive and resilient employment. Coordinated action is the need of the time to survive this speedy AI-driven era which along with benefits brings risks of outpacing society’s ability to adapt and deepening inequality and insecurity across the workforce.

Ethical considerations and Responsible AI Governance

The rapid integration of AI and automation in workplaces raises urgent ethical questions that extend beyond mere efficiency and productivity. Responsible AI governance is vital to ensure that technology serves to enhance human work without compromising fundamental labour rights or dignity. One key ethical issue is transparency workers must understand how AI algorithms influence decisions such as hiring, promotions, performance evaluations, or terminations. Without clear explanations or the ability to challenge AI-driven decisions, employees face greater loss. Transparency mechanisms, including “explainable AI” models, human oversight, and right to appeal, which play as critical safeguards against opaque and biased automation. Moreover, AI systems are vulnerable to algorithmic bias, where prejudices embedded in training data related to gender, ethnicity, age, or socioeconomic status may lead to discriminatory practices. Such biases will give a push to the existing inequalities and marginalize vulnerable groups in recruitment, evaluation, and compensation. 

Ethical AI governance requires continuous audits, inclusive datasets, and corrective feedback mechanisms to detect and mitigate these harms. Data privacy and worker autonomy are also ethical cornerstones in AI-driven work environments. Constant monitoring by AI-powered surveillance threatens employee’s privacy altering workplace dynamics and may induce stress. Ethical frameworks must impose clear limits on data collection, ensure informed consent, and enforce compliance with privacy laws. Balancing monitoring for productivity with respect for personal boundaries fosters healthier and more trusting workplaces. Another critical aspect is worker participation in the deployment, and monitoring of AI systems. Including labour representatives, unions, and employee voices in AI governance processes help align technological tools keeping in consideration workers’ real needs and rights. Co-creation and social dialogue contributes to legitimizing AI systems and increasing its acceptance among workers. Finally, responsible AI governance extends to accountability. The organizations must be held responsible for the impacts of AI on employees and legal and institutional mechanisms must be established to cater grievances, enforce compliance with labour standards, and promote ethical innovation. Implementing these principles ensures technology advances human well-being and not just economic gain. Thus, involving ethics into AI governance is essential for protecting workers’ rights, preventing discrimination, and nurturing fair, transparent, and human-centred workplaces in the era of automation.

Artificial intelligence and automation are reshaping the world of work in a significant way. While these technological advancements increase productivity and create new, high-skilled job opportunities, they also pose serious risks to workers’ rights and job security, especially for workers involved in routine, manual, and low-skilled roles. By 2030, around 92 million jobs globally may be lost due to automation, but about 78 million new jobs are expected to emerge, mostly requiring advanced skills. Vulnerable groups, such as low-skilled workers, women, and aged employees, are more likely to face unemployment or underemployment due to limited access to training. Current labour laws are not fully prepared to manage the challenges posed by Artificial intelligence, including biased automated hiring and firing, lack of transparency, and exclusion of gig workers from employment protections. Landmark legal cases like Uber BV v. Aslam highlight the need to extend the rights to workers without discrimination. Furthermore, workplace surveillance raises privacy concerns that existing laws struggle to address. To manage this transition, large-scale investments in reskilling and upskilling are critical, along with expanded social safety nets to protect displaced workers. Ethical AI governance and transparency must be prioritized to ensure fairness, accountability, and respect for worker dignity. Only through combined legal, policy, and social efforts can the benefits of AI be realized while protecting the workforce from its risks.

Artificial intelligence and automation are transforming the world of work in different ways. While these technologies bring improved productivity, innovation, and the creation of new job opportunities, they also threaten significant displacement of routine and low skilled jobs. The shift demands urgent attention to protection of labour rights and ensuring job security, especially for vulnerable groups who face greater risks due to skill gaps and limited access to reskilling programs. The current labour laws, designed before the AI era, fall short in addressing issues like opaque AI decision-making, algorithmic biases, and the vulnerable status of gig economy workers. Ethical AI governance emerges as an important pillar in this new landscape, calling for a transparent, fair, and accountable system designed with workers' inclusion, privacy protections, and bias mitigation in mind. Alongside legal and ethical frameworks, large scale investments in inclusive reskilling and robust social safety nets are essential to empower workers for the evolving demands of an AI enhanced workplace. Ultimately, balancing rapid technological progress with human centric protections offers the most promising path to a sustainable and just future of work. One where innovation and dignity go hand in hand, fostering inclusive growth and equal opportunities for all.

• Comprehensive Legal Reforms:  

There is a need to update and expand labour laws to address AI-specific challenges. Mandate transparency and human oversight for all AI based employment decisions, including hiring, promotion, and termination. Ensure gig workers legal protection with clear and confirmed employment status along with entitlement to benefits such as minimum wage, social security, and grievance mechanisms.

• Ethical AI Governance Frameworks:

Develop and implement specific standards for ethical use of  AI at workplaces, giving importance to fairness, privacy, and accountability. Introduce regulatory requirements for regular algorithmic audits to detect and correct biases. Establish data privacy safeguards and informed consent protocols for employee’s monitoring to protect workers’ autonomy.

• Accessible Reskilling and Upskilling Programs:  

Invest in scalable, affordable, and inclusive training initiatives aimed at equipping workers with digital literacy, critical thinking, and AI-related competencies, especially to those from vulnerable groups. Public-private partnerships will boost the process and make it more effective. 

• Strengthening Social Safety Nets:

Enhance unemployment benefits, income support, and active labor market policies to lessen the impact of job displacement. Introduce retraining allowances, temporary income subsidies, and job placement assistance. Special focus should be given to marginalized communities disproportionately affected by automation.

• Promoting Worker Participation and Social Dialogue :  

Involve workers' representatives, unions, and civil society in designing the governance of AI in workplaces. Facilitate participatory models that give employees a voice in AI adoption strategies, ensuring transparency, trust, and shared accountability.

• Research and Monitoring:

Establish dedicated bodies to continuously monitor AI’s impact on employment trends, worker rights, and social equity. Use data driven insights to inform policy adjustments and identify emerging risks beforehand.

• International Cooperation and Best Practice Sharing:  

Collaborate globally to harmonize labour standards for AI workplaces, share best practices, and develop common regulatory guidelines to address cross-border challenges posed by automation and digital labour platforms.

• Responsible Innovation and Corporate Accountability:

Foster a culture of responsible innovation where companies adopt AI and automation technologies with a clear commitment to ethical practices and social responsibility. Businesses should conduct impact assessments before deploying AI systems to understand potential risks to workers and communities. Corporate transparency through regular reporting on AI usage, workforce impacts, and mitigation measures should be encouraged. Incentivizing companies that prioritize inclusive growth, upskilling, and fair labour practices can help align profit motives with social good, ensuring AI adoption benefits all stakeholders and boosts sustainably.

1. World Economic Forum, The Future of Jobs Report 2025, weforum.org, Nov. 16, 2025, https://reports.weforum.org/docs/WEF_Future_of_Jobs_Report_2025.pdf (last visited Nov. 23, 2025).

2. PwC, The Fearless Future: 2025 Global AI Jobs Barometer, pwc.com, June 1, 2025, https://www.pwc.com/gx/en/services/ai/ai-jobs-barometer.html (last visited Nov. 23, 2025).

3. Goldman Sachs, How Will AI Affect the Global Workforce?, goldmansachs.com, Aug. 12, 2025, https://www.goldmansachs.com/insights/articles/how-will-ai-affect-the-global-workforce (last visited Nov. 23, 2025).

4. Nexford University, How Will Artificial Intelligence Affect Jobs 2026-2030, nexford.edu, Oct. 19, 2025, https://www.nexford.edu/insights/how-will-ai-affect-jobs (last visited Nov. 23, 2025).

5. International Labour Organization, Digital Labour Platforms and the Future of Work, ilo.org, 2023, https://www.ilo.org/global/topics/future-of-work/lang--en/index.htm (last visited Nov. 23, 2025).

6. Jackman Law, Labour Rights and AI: Impact of AI and Automation in Employment Law, jackmanlaw.utoronto.ca, 2025, https://jackmanlaw.utoronto.ca/future/news/blog-labour-rights-and-ai-impact-ai-and-automation-employment-law (last visited Nov. 23, 2025).

7. UK Supreme Court, Uber BV v. Aslam,  UKSC 5, supremecourt.uk, Jan. 29, 2021, https://www.supremecourt.uk/cases/uksc-2019-0029.html (last visited Nov. 23, 2025).

8. Comply360, Digitalisation’s Impact on Labour Laws: Key Insights for Advisors in 2025, comply360.in, Jan. 2, 2025, https://www.comply360.in/digitalizations-impact-on-labour-laws-key-insights-for-advisors-in-2025 (last visited Nov. 23, 2025).

9. Vintage Legal Volumes, Reshaping Labour Laws in the Age of Automation, vintagelegalvl.com, July 31, 2022, https://www.vintagelegalvl.com/post/reshaping-labour-laws-in-the-age-of-automation (last visited Nov. 23, 2025).

10. RSIS International, Artificial Intelligence and the Future of Job Security: A Narrative Review, rsisinternational.org, Nov. 12, 2025, https://rsisinternational.org/journals/ijriss/articles/artificial-intelligence-and-the-future-of-job-security-a-narrative-review (last visited Nov. 23, 2025).

11. McKinsey & Company, AI in the Workplace: A Report for 2025, mckinsey.com, Jan. 27, 2025, https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/superagency-in-the-workplace-empowering-people-to-unlock-ais-full (last visited Nov. 23, 2025).

12. Exploding Topics, 60+ Stats On AI Replacing Jobs (2025), explodingtopics.com, May 25, 2024, https://explodingtopics.com/blog/ai-replacing-jobs (last visited Nov. 23, 2025).

13. AI CERTs, 2025 AI Job Market: Over 10,000 Jobs Lost to Automation, aicerts.ai, Aug. 13, 2025, https://www.aicerts.ai/news/2025-ai-job-market-over-10000-jobs-lost-to-automation (last visited Nov. 23, 2025).

14. British Institute of International and Comparative Law, Uber BV v. Aslam (2021), biicl.org, 2021, https://www.biicl.org/gig-workers-litigation-database/uber-bv-v-aslam-2021 (last visited Nov. 23, 2025).

15. Venner Shipley LLP, The UK Supreme Court’s Decision in Uber v. Aslam, vennershipley.com, Aug. 9, 2023, https://www.vennershipley.com/insights-events/the-uk-supreme-courts-decision-in-uber-v-aslam-on-workers-and-whether-they-enjoy-e (last visited Nov. 23, 2025).

16. CNBC, Why AI May Kill Career Advancement For Many Young Workers, cnbc.com, Nov. 20, 2025, https://www.cnbc.com/2025/11/20/why-ai-may-kill-career-advancement-for-many-young-workers.html (last visited Nov. 23, 2025).

17. Sage University, The Impact of Artificial Intelligence on Employment, sageuniversity.edu.in , Oct. 31, 2024, https://sageuniversity.edu.in/blogs/impact-of-artificial-intelligence-on-employment (last visited Nov. 23, 2025).

18. Boston Consulting Group, AI at Work: Momentum Builds, but Gaps Remain, bcg.com, July 21, 2025, https://www.bcg.com/publications/2025/ai-at-work-momentum-builds-but-gaps-remain (last visited Nov. 23, 2025).

19. BBC News, Uber Drivers Are Workers Not Self-Employed, Supreme Court Rules, bbc.com, Feb. 18, 2021, https://www.bbc.com/news/business-56123668 (last visited Nov. 23, 2025).

20. Keystone Law, Supreme Court Judgment Confirms Employment Status for Uber Drivers, keystonelaw.com, Aug. 30, 2022, https://www.keystonelaw.com/keynotes/supreme-court-judgment-confirms-employment-status-for-uber-drivers (last visited Nov. 23, 2025).

21. Innopharma Education, The Impact of AI on Job Roles, Workforce, and Employment, innopharmaeducation.com, https://www.innopharmaeducation.com/blog/the-impact-of-ai-on-job-roles-workforce-and-employment-what-you-need-to-know (last visited Nov. 23, 2025).

22. ACRI, Assessing the Interplay and Impact of AI, Automation, and…, journalacri.com, https://www.journalacri.com/index.php/ACRI/article/view/690 (last visited Nov. 23, 2025).

23. Goldman Sachs, How Will AI Affect the Global Workforce?, goldmansachs.com, https://www.goldmansachs.com/insights/articles/how-will-ai-affect-the-global-workforce (last visited Nov. 23, 2025).

24. McKinsey & Company, AI in the Workplace: A Report for 2025, mckinsey.com, https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/superagency-in-the-workplace-empowering-people-to-unlock-ais-full-potential-at-work (last visited Nov. 23, 2025).

25. Nexford University, How Will Artificial Intelligence Affect Jobs 2026-2030, nexford.edu, https://www.nexford.edu/insights/how-will-ai-affect-jobs (last visited Nov. 23, 2025).