AI and Robotics Outpace Employment Laws: IBA Report Calls for Urgent Legal Reform in the Digital Workplace

IBA Global Employment Institute Report Highlights Legal Gaps in AI Integration

On Monday 30 June 2025, the International Bar Association (IBA) Global Employment Institute (GEI) released a detailed study revealing a pressing need for updated legal frameworks to manage the growing impact of artificial intelligence (AI) in the workplace. The report finds that current laws are falling behind technological progress, shifts in worker attitudes, and emerging social and environmental demands.

Digitalisation and its workforce impact are the core focus of this report titled Digitalisation (Artificial Intelligence and Robotics) and its Impact on the World of Work – Part II. It examines how AI and robotics affect jobs, working conditions, and labour markets across sectors and countries, while highlighting challenges and opportunities for workers and policymakers alike. The report is available as a free resource from the IBA, the global voice for legal professionals.

Key Findings

• Digitalisation is reshaping the white-collar workforce more than the blue-collar sector.
• Generative AI could boost worker productivity by up to 40%, but it risks widening wage inequality.
• Professions heavily exposed to AI, such as legal and medical roles, may find AI complements their work rather than replaces it.
• AI adoption may deepen economic gaps between low-income and advanced economies.
• The COVID-19 pandemic accelerated acceptance of flexible and remote working arrangements.
• While job losses remain a concern, millions of new jobs may emerge from these technologies.

The report stresses the urgent need to update labour laws, which traditionally focus on collective worker rights and union-employer relations, and employment laws, which govern individual contracts. These changes must also consider environmental policies that create new jobs and require fresh regulations. Tax laws, for example, need to adapt to new work modes such as the rising trend of nomad workers. Intellectual property rights and corporate law also call for revision.

Voices from the Experts

Dr Gerlind Wisskirchen, a labour law expert and one of the report’s lead authors, pointed out that AI is reshaping what work means across sectors and borders. She emphasized the need for workers, companies, and lawmakers to respond swiftly to challenges like skill gaps and legal uncertainties introduced by emerging technologies.

Dr Inka Knappertsbusch, also a lead author, highlighted that AI and robotics are catalysts for fundamental changes in work itself. She stressed that as machines increasingly make decisions and evaluate performance, human traits like creativity, empathy, and adaptability are becoming more valuable. The goal is to ensure technology supports rather than replaces human contributions, with organisations prepared to manage this shift responsibly.

Regina Glaser, GEI Co-Chair, underscored the critical moment for combining AI and robotics with traditional industries. She called for strong legal frameworks and societal preparedness to ensure economic growth benefits workers and respects corporate responsibilities, especially as AI impacts roles from administrative tasks to higher-level legal duties.

Legal and Social Implications

The report distinguishes AI’s impact on white-collar jobs from automation’s effect on blue-collar roles but urges adaptable laws that cover both areas. Recommendations include introducing taxes on robots and enhancing social security for self-employed workers. Sustainability is another concern, as data centers supporting AI consume significant power and water resources.

For the legal profession, AI is expected to increase productivity without threatening judges’ roles. However, routine tasks like contract drafting and administrative work are more vulnerable to automation by generative AI. This shift raises important questions about gender equality since women are more represented in these exposed roles.

Research cited in the report estimates only 7-8% of lawyers face replacement by AI in the near term. Strong client relationships, creativity, and analytical skills remain crucial. Still, 85% of lawyers surveyed believe AI will bring major changes to their profession within three years.

Recommendations for Policymakers and Businesses

• Skill Development: Encourage lifelong learning to close skill gaps and prepare workers for AI-augmented roles.
• Investment: Governments and companies should see AI as an opportunity, investing in digital infrastructure and innovation.

This latest report builds on the 2017 publication Artificial Intelligence and Robotics and Their Impact on the Workplace, updating the outlook on how digital transformation continues to reshape labour markets, labour relations, and legal frameworks.

For HR and legal professionals, staying informed about these developments is crucial to align workplace policies and legal compliance with the realities of AI integration.

To deepen your understanding of AI’s impact on work and develop skills relevant to this evolving landscape, consider exploring specialized courses available at Complete AI Training.