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For Your Business Oludolapo Makinde July 10, 2024

How AI Is Transforming Work and Enhancing Labor Sustainability Reporting

As AI reshapes the landscape of work, it also presents an opportunity to revolutionize sustainability reporting on how we report and improve labor conditions globally. This technological revolution offers the potential to not only just automate routine tasks, but also provide deeper insights and greater transparency into workforce dynamics. By doing so, it helps drive meaningful progress towards sustainable workplaces.

The growth of AI tools like ChatGPT is an indication that AI development and use is picking up steam. Most notably, OpenAI has recently created technology that can imitate a person’s voice. Although this tool has not been made publicly available to prevent potential misuse, it has been successfully employed in recreating the voice of a woman who lost hers to a brain tumor, demonstrating AI's potential for positive impact.

AI and the Future of Work

Numerous studies have explored how AI will affect jobs across the world. A 2023 Goldman Sachs report indicates that AI could displace about 300 million full-time jobs, potentially affecting up to two-thirds of jobs in the U.S. and Europe. Additionally, a McKinsey Global Institute report estimates that 12 million people will need to change professions by 2030.

These studies suggest that there’s a growing worry that AI may displace jobs and exacerbate social inequalities. These findings highlight the critical importance of ensuring equitable employment opportunities, fair working conditions, and respect for workers’ rights in the age of AI.

When examining these issues from a broader perspective, it becomes even more complex. A 2024 study conducted by the International Monetary Fund, shows that AI exposure is lower in emerging markets (40%) and low-income countries (26%) compared to developed countries (60%).

This difference could widen global and domestic inequalities. The study also reveals that those with access to AI could have a significant advantage over those without it and that younger workers will potentially have an easier time adjusting to and leveraging AI technologies compared to older workers.

How then can businesses mitigate these potential inequalities? In their 2023 study on AI’s influence on the future of work, MIT professors Daron Acemoglu and Simon Johnson, suggest an important strategy: businesses must regard labor not merely as a cost but as a key asset for increasing productivity. “Companies must recognize that, in reality, labor is a critical resource for productivity growth,” they say.

Also, instead of aiming to create artificial superintelligence or AI systems that outperform humans, they propose shifting the focus to supporting workers. They also advocate for involving employees in decision-making processes about technology use, considering that workers possess valuable insights into which aspects of their jobs can be effectively automated.

Leveraging AI for Sustainability Reporting on Labor

As AI transforms the landscape of employment and job creation, it also has the power to strengthen efforts to mitigate workplace inequalities.

Tackling workplace inequalities first requires being aware of their existence by collecting data and monitoring labour issues. AI can help companies identify, understand, and mitigate these inequalities, and improve the way companies report and manage labor issues, contributing to a more equitable and sustainable working environment.

Ensuring fair and safe working conditions is a key part of Environmental, Social, and Governance standards like the Global Reporting Initiative. This standard addresses various aspects of labor and working conditions, including conditions of employment, collective bargaining, occupational health and safety, non-discrimination, and issues like child labor and forced labor.

The complexity and importance of these issues highlight the need for a comprehensive approach. How can AI help businesses become more transparent in their reporting on these crucial issues?

AI can significantly enhance sustainability reporting on labor and working conditions through various means. Here are 5 ways AI can contribute:

  1. AI can utilize technologies like machine learning and natural language processing to analyze large datasets from various sources including reports, surveys, exit interviews, training records, emails, etc. By identifying patterns, and potential problems that human analysts might miss, AI can provide management with critical insights into working conditions, employee turnover, diversity metrics, occupational health and safety concerns, among others, needed to make informed decisions.
  2. AI can provide labor risk assessments. For example, by analyzing data from news reports, social media, and other sources, AI can identify the risk of child labor and forced labor in specific regions or industries. This foresight is valuable for companies that are venturing into new markets or industries.
  3. AI can assist with regulatory compliance by pinpointing gaps in compliance with local laws as well as international labor standards. This function is especially useful for multinational corporations doing business in two or more jurisdictions. This allows for early detection of non-compliance with labor laws, enabling organizations to put in place preventive measures.
  4. Using AI, companies can closely monitor their supply chains. AI can analyze data from audits, certifications, and reports to pinpoint potential labor issues in both their operations and those of their suppliers. This enables businesses to take action and report on their supply chain due diligence, helping them minimize labor risks.
  5. AI can generate content for sustainability reports, including text, pictures and infographics. It can also produce simplified versions of sustainability reports in varying formats (text, presentations, infographics, podcasts, etc.), that can be shared with different audiences. Additionally, AI can help develop interactive platforms that enhance stakeholder engagement where stakeholders can share feedback on the company’s efforts to protect workers and manage labor risks.

It is clear that AI holds the power to revolutionize work and work conditions. However, it also presents challenges, such as job loss and social inequalities. Thus, any approach to integrating this technology must be thoughtful and inclusive. Doing so requires paying attention to and being aware of inequalities as they arise. By leveraging AI in monitoring and reporting on labor issues, companies can contribute to creating a future where workers are treated fairly and equitably.

 

This article was written by Oludolapo Makinde from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.

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