Can companies fire employees for using ChatGPT at work?

If an organisation has officially restricted the use of generative AI at the workplace for personal or professional use, it has the authority to take action against employees, which may eventually lead to firing, experts said.

Apple, JPMorgan and Samsung have officially banned their employees from using ChatGPT at work or on company hardware. Others have limited or are encouraging workers to opt for alternatives when the need arises.

However, confusion remains over the legal implications if an employee is caught using OpenAI’s popular AI chatbot – can they be fired or can the employer take disciplinary action against workers?

If an organisation has officially restricted the use of generative AI at the workplace for personal or professional use, it has the authority to take action against employees, which may eventually lead to firing, experts said.

“Utilising ChatGPT for sensitive data analysis may violate data protection laws, including those for business secrets and regulations like medical or banking secrecy, potentially leading to contractual breaches or legal violations,” said Prateek Lakra, founding partner of Clergy & Wisemen, a law firm in New Delhi.

ALSO READ | Renewable energy firms step up hiring as sustainability takes centre stage

Even if the data shared is not crucial, HR experts said an organisation could still take strict action.

“Typically, any organisation would give a strong warning and if caught again, it may lead to termination for repeated offences compromising organisational priorities,” said Arun Paul, head of HR at Orion Innovation, an IT services firm.

As a result, even in the absence of an explicit law banning such tech at the workplace, the use of ChatGPT may result in employees getting fired.

If it's not banned

Even if the tech is not officially banned at the workplace, its usage may result in serious implications. Employees must understand that companies restrict the use of ChatGPT due to security concerns.

“Employees must exercise caution when inputting information into such a system as it may potentially breach confidentiality if proprietary data is fed into the AI engine,” said Nakul Batra, a partner at DSK Legal, thereby making an indirect way for companies to take legal action against their employees.

ALSO READ | Why companies offer higher salary packages to external hires

Experts said there are enough ways for a worker to be benched before getting fired.

“Not following the policy that is clearly spelt out can lead to heavy legal entanglement, being fired or even blacklisted,” said career coach Sawan Kapoor.