Artificial Intelligence (AI), Employee Grievances and Confidentiality: is your Business Prepared?

Artificial Intelligence has become one of the biggest workplace disruptors in recent years. Whether it's drafting emails, summarising meetings or producing reports, AI tools such as ChatGPT, Microsoft Copilot and Google Gemini are becoming commonplace across UK businesses.

As HR professionals, we're seeing another emerging trend and it's that employees are increasingly using AI to draft workplace grievances, disciplinary responses and even Employment Tribunal documentation.

Whilst AI can help employees communicate more clearly and understand their employment rights, it also presents significant challenges for employers. From confidentiality concerns to inaccurate legal information, organisations should be considering whether their current policies are fit for purpose.

At Hello People Solutions, we believe AI isn't something businesses should fear but it is something they should manage.

AI is changing the way employees raise concerns

Traditionally, grievances reflected an employee's own words and experiences.

Increasingly, HR teams are receiving lengthy, highly structured documents containing legal terminology, references to legislation and extensive requests for disclosure.

Employment lawyers have reported a noticeable increase in AI-assisted grievances and tribunal claims over the past year. While this can improve access to justice for employees who may not otherwise understand workplace procedures, it can also create challenges where AI has:

• exaggerated legal arguments;

• included legislation that is not relevant to UK employment law;

• cited inaccurate or non-existent legal authorities ("AI hallucinations");

• produced unnecessarily lengthy documents that obscure the genuine workplace issues.

  
  

The Financial Times recently reported that employment lawyers believe AI-generated grievances and tribunal documentation are now becoming commonplace, contributing to increasing pressure on the Employment Tribunal system.

Importantly, employers should avoid assuming that because a grievance appears AI-generated it is somehow less genuine. Every grievance must still be investigated fairly, reasonably and in accordance with the ACAS Code of Practice.

The hidden confidentiality risk with Artificial Intelligence usage

One of the biggest concerns is not the grievance itself, it's what employees may be uploading into AI systems.

To obtain a more tailored response, employees may copy and paste:

• disciplinary investigation reports;

• witness statements;

• emails;

• employment contracts;

• sickness information;

• salary details;

• performance records;

• names of colleagues and managers;

• commercially sensitive company information.

Many publicly available AI platforms process information using third party systems. Unless an employer has approved a secure enterprise AI platform with appropriate contractual safeguards, employees may unknowingly disclose confidential or personal information outside the organisation.

The Information Commissioner's Office (ICO) has consistently reminded organisations that UK GDPR still applies when AI is used. Organisations remain responsible for ensuring that personal data is processed lawfully, securely and transparently.

In simple terms, using AI does not remove an organisation's data protection obligations.

Why confidentiality matters

Imagine an employee uploads the following into a public AI chatbot:

• a grievance investigation;

• medical evidence relating to another employee;

• salary comparisons;

• customer information;

• internal business strategies.

  
  

Even if the employee's intention is simply to improve the wording of their grievance, the organisation may now face significant confidentiality concerns.

Many employees simply don't appreciate that AI platforms are, in effect, third-party providers. Whilst some enterprise AI products offer enhanced privacy protections, publicly available tools should never be assumed to provide an appropriate environment for confidential employment information.

This is one of the reasons why education is becoming just as important as enforcement.

The courts are also recognising the risks of AI

Although there is currently no reported UK Employment Tribunal case specifically about employees using AI to draft grievances, the wider legal system is already responding to the risks posed by generative AI.

The Judiciary of England and Wales has published guidance warning that public AI tools may generate inaccurate information and that confidential information should not be entered into public AI chatbots. Users remain responsible for the accuracy of any material submitted to courts or tribunals.

The guidance is aimed at judges and legal professionals, but the principles apply equally to employers and employees:

• verify AI-generated information;

• never rely on AI without human review;

• avoid uploading confidential information into public AI systems.

These principles are increasingly relevant within workplace investigations and grievance procedures.

AI should support people and not replace judgement

One concern we're beginning to see is that AI can sometimes escalate disputes rather than resolve them.

Instead of helping an employee explain a workplace concern, AI may produce:

• complex legal arguments;

• allegations that the employee never intended to make;

• references to discrimination without supporting facts;

• unrealistic expectations of compensation;

• inaccurate legal advice.

This can make early workplace resolution more difficult for everyone involved.

Good HR is still about conversations, evidence and fair decision-making, not simply generating longer documents.

Why every employer should have an AI policy

Many organisations have IT policies and data protection policies.

Far fewer have an Artificial Intelligence Policy.

Yet employees are already using AI every day; whether employers realise it or not.

An effective AI policy should clearly explain:

• which AI tools are permitted;

• which information must never be entered into AI platforms;

• expectations around confidentiality;

• data protection responsibilities;

• human oversight of AI-generated work;

• acceptable use during investigations, disciplinary procedures and grievances;

• consequences of inappropriate AI use.

Rather than banning AI outright, employers should focus on safe, responsible and transparent use.

The role of HR has never been more important

AI is here to stay.

Used responsibly, it can improve productivity, support communication and increase access to information.

Used carelessly, it can create confidentiality breaches, misinformation, unnecessary disputes and additional legal risk.

For many SMEs, the challenge is knowing where to draw the line.

That's where outsourced HR support becomes invaluable.

At Hello People Solutions, we help businesses develop practical, legally compliant workplace policies that reflect modern ways of working, including the responsible use of Artificial Intelligence.

Because whilst technology is evolving rapidly, the fundamentals of good employment practice remain unchanged:

• protect confidential information;

• investigate concerns fairly;

• train managers;

• communicate expectations clearly;

• and ensure people, not AI, make the final decisions.

Artificial Intelligence is transforming the workplace at an extraordinary pace, and its use in employment matters will only continue to grow. The question is no longer whether employees are using AI as they almost certainly are. The question is whether employers have the right safeguards in place.

By introducing clear AI policies, reinforcing confidentiality obligations and ensuring managers understand both the opportunities and the risks, businesses can embrace innovation without compromising trust, compliance or fairness.

At Hello People Solutions, we believe the most successful organisations will be those that combine the efficiency of technology with the expertise and judgement of experienced HR professionals. AI can be a valuable tool, but it should never replace sound people management in our opinion.

Need help with this topic within your SME? Let's talk.