Employers Struggle to Regulate AI Use as Workers Adopt Tools in Secret

As of November 14th, 2025, employers are grappling with the challenge of regulating the use of AI tools in the workplace. While some companies are offering bonuses to staff who use AI regularly and warning of possible disciplinary action for misuse, many others have failed to establish even minimum guidelines, leaving workers confused about how to properly deploy these new technologies.

The lack of clear policies has resulted in employees running personal generative AI accounts in secret or inadvertently breaching company rules, according to lawyers and employment experts. This "hangover" effect stems from the early days when firms were "aggressively telling people not to use AI" due to fears of data leaks. Even as employers are now sanctioning AI use, the lingering hesitation has led to a situation where "people don't use it at all" or those who do are using private accounts.

Lawyers have reported being contacted by concerned managers about "purposeful or merely unintentional negligence" by staff who are unaware of the risks and company guidelines around AI. In the legal industry, there have been high-profile cases where the use of AI tools has violated court rules, leading to "attorney and firm embarrassment, sanctions, negative publicity, and significant reputational harm."

To avoid such escalation, business leaders are advised to set clear policies covering confidentiality, bias, data privacy, and the need for human review. Some companies are even offering financial incentives, such as a £1 million bonus at a UK law firm, to encourage employees to use AI responsibly and disclose its use. However, the rapid pace of AI development means policies must be continuously updated to keep pace with the technology.