BusinessEurope: AI tools at work / Algorithmic management

Date of publication

3 July 2025

Available language

English

Country/countries concerned

European Union

Categories

Industrial relations

AI and algorithmic management tools are transforming workplaces across Europe. BusinessEurope’s new report, AI Tools at Work: Algorithmic Management, explores how these technologies are reshaping management practices and the future of work. The report highlights how AI tools are being used to allocate tasks and monitor workflows in real time; track employee performance through data collection and analysis; automate administrative and HR processes and Support decision-making in recruitment, scheduling, and resource planning.

BusinessEurope emphasizes the potential of AI to increase productivity and efficiency while also underlining the need for clear governance, transparency, and skills development to ensure fair and responsible implementation.

The report also outlines key challenges of algorithmic management, including:

  • Transparency and explainability of AI decision-making

  • Data protection and privacy of workers

  • Impact on job quality and workplace well-being

  • Social dialogue to involve workers in AI deployment

As European companies accelerate the adoption of AI tools, understanding how algorithmic management impacts work and workers is crucial for sustainable digital transformation.

See below the BusinessEurope report on AI tools at work to explore its analysis and recommendations for employers, policymakers and social partners

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