AI Demands Urgent Legal Framework Overhaul to Protect Workers and Address Ethical Risks, Says International Bar Association Study

International Bar Association Urges AI-Focused Legal Framework to Update Labour Laws

The International Bar Association’s Global Employment Institute has released a new report emphasizing the urgent need for a legal framework centered on artificial intelligence (AI) and robotics. Titled "Digitalisation (Artificial Intelligence and Robotics) and its Impact on the World of Work – Part II,” the report calls for comprehensive updates to labour and employment laws to address data protection, ethical issues, and the evolving nature of work.

Existing labour laws primarily protect collective worker rights and govern union-employer relationships, but they fall short in addressing individual employee rights and obligations within the context of AI-driven workplaces. The report highlights the necessity of revising these laws to keep pace with technological advancement.

Key Legal Areas Needing Reform

• Environmental policies: New job creation linked to environmental initiatives requires updated regulations and taxation systems.
• Intellectual property and corporate law: Both areas must be adapted to reflect AI’s impact on innovation and business models.
• Labour laws: Must accommodate emerging work modes such as nomad working and support data privacy and ethical standards.

Dr Gerlind Wisskirchen, former co-chair of the IBA’s employment and industrial relations law committee, stated, “AI is redefining not just how work is done but also what work means for society. Workers, companies, and lawmakers must swiftly address skill gaps and legal uncertainties introduced by these technologies.”

AI’s Unequal Impact on Sectors and Economies

The report finds that digitalisation has affected white-collar jobs more than blue-collar roles. Generative AI could increase worker productivity by up to 40%, but this may also deepen wage inequality. Advanced economies stand to benefit more from AI adoption, potentially widening the economic gap with lower-income countries.

In the legal and medical professions, AI is expected to complement rather than replace human roles. For example, AI can enhance judicial productivity without displacing judges. According to the Organisation for Economic Co-operation and Development, lawyers face a 7-8% chance of AI replacing their roles, primarily in administrative tasks like contract drafting and note-taking.

Notably, 85% of lawyers surveyed by the IBA anticipate significant changes to their profession within the next three years. This suggests that legislation must remain flexible to cover emerging issues such as robot taxes and expanded social security for self-employed professionals.

Human Skills and Responsible AI Integration

Dr Inka Knappertsbusch, counsel at CMS Hasche Sigle, pointed out that AI and robotics are transforming decision-making, performance evaluation, and career development. She emphasized that human skills like creativity, empathy, and adaptability will become more important, not less.

Ensuring technology supports rather than replaces human contribution is a critical challenge. Organisations must be prepared to manage this shift with foresight and responsibility.

Recommendations for Lawmakers and Businesses

• Promote lifelong learning: To prepare workers for AI-augmented roles and help close skill gaps.
• Invest in digital infrastructure: Government and corporate investment is essential to support digitalisation.
• Update legal frameworks: Laws must reflect AI’s impact on workers’ rights and corporate duties.

Regina Glaser, co-chair of the Global Employment Institute, underscored the importance of adapting legal professions to AI advancements. She stressed the need for ongoing digital training initiatives to keep legal professionals relevant as AI shifts job functions.

This report builds on the IBA’s earlier 2017 publication, "Artificial Intelligence and Robotics and Their Impact on the Workplace." Both studies highlight the continuing evolution of work and the critical role that law plays in shaping fair, effective responses to AI integration.

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