AI Adoption, Mental Health, and Global Tensions: Key Insights from the International Bar Association’s 2025 Employment Law Report

International Bar Association Shares Insights on Human Resources Legal Trends

The International Bar Association’s Global Employment Institute (GEI) has released its 13th annual report focusing on regulatory trends in human resources law. The report highlights recent shifts in workplace dynamics, the influence of technology, and evolving labour market conditions observed over the past two years.

A key finding is the growing adoption of artificial intelligence (AI) in the workplace. Companies are integrating AI to boost efficiency, personalise employee experiences, and enhance decision-making processes. However, the report also flags challenges such as job displacement and emerging ethical concerns tied to AI adoption.

Changing Work Arrangements and Geopolitical Impact

The study notes a shift back towards office-based work, contrasting with the remote work trends seen in previous years. This reflects varying cultural, economic, and organisational priorities across regions.

Global conflicts, including the Russia-Ukraine and Israel-Palestine situations, have significantly influenced labour markets. Employees connected to these regions face psychological stress, while workplaces encounter tensions arising from diverse opinions. Migration flows are also affected, with many individuals displaced from their homes.

• Labour markets have experienced notable disruptions.
• Employees of affected regions are under emotional strain.
• Workforces face internal tensions due to differing views.
• Migration patterns have shifted, impacting available talent pools.

These geopolitical events shape workplace policies globally, not just in specific countries.

Mental Health and Absenteeism

The report highlights an increase in absenteeism linked to stress and mental health challenges. Employers are responding by implementing support systems such as psychological services, mental health leave, flexible schedules, and additional paid leave to protect employee wellbeing and maintain productivity.

Despite growing awareness, many countries lag in updating legal frameworks to support mental health in employment settings, indicating room for development.

Workforce Stability and AI Adoption Statistics

The GEI report provides data showing workforce stability in countries like Lithuania, Pakistan, Russia, Sweden, and Ukraine. Meanwhile, other statistics reveal workforce concerns and AI integration trends:

• 71% of employees in Canada are seeking new roles.
• 87% of programmers in China’s tech sector worry about job security past age 35 due to age-related hiring preferences.
• 36% of Canadian employers believe AI will boost productivity.
• 41% of UK employers recognise AI’s potential.
• 42% of employers in Latvia have integrated AI tools.
• 35% of Luxembourg employers utilise external AI services.

Legal Developments and Future Focus

The IBA encourages employment lawyers and HR professionals to watch for changes in retirement age policies, parental leave regulations, data protection laws, and the alignment of workplace policies with human rights standards.

As AI becomes more embedded in daily work, businesses must prioritise retraining, address ethical considerations, and ensure AI supports human creativity. Legal frameworks will need to evolve alongside these changes.

There is also growing interest in how diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) initiatives will develop in the coming year.

For HR professionals interested in expanding their knowledge on AI and its workplace applications, resources like Complete AI Training offer courses and materials tailored to different skill levels and job roles.