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AI in the workplace: What Government & Public Sector employers need to know

03 August 2026
AI is now being used throughout the employment lifecycle, from recruitment and performance management to investigations and dispute resolution. For public sector employers, the question is no longer whether to use AI, but how to use it safely, effectively and in a way that employees trust.

Public sector bodies seeing the greatest benefit are often not those with the most advanced technology, but those with clear governance, effective training, strong accountability and a commitment to human oversight and judgement.

AI is already embedded in everyday workplace decisions

AI is becoming a routine part of working life. Government research found that one in three people had used AI at work in the previous month, despite most workers receiving no AI-related training (AI Skills for Life and Work: General Public Survey Findings - GOV.UK).  As adoption accelerates, public sector bodies are increasingly using AI to improve efficiency, reduce administrative burdens and support activities such as drafting communications, analysing data and streamlining recruitment.  However, the risks are sharpening. According to the latest Ministry of Justice employment tribunal statistics (January to March 2026), the single-claim open caseload has risen by 55% year-on-year to 64,000 outstanding cases, with total open claims reaching 531,000 (Tribunal Statistics Quarterly: January to March 2026 - GOV.UK).

AI should inform decisions, not determine them

Managers across the public sector are increasingly using AI to summarise information, draft documents and support decisions relating to performance, capability, attendance and conduct. Problems arise when managers treat AI outputs as answers rather than inputs. A performance summary generated in seconds may appear persuasive, but managers still need to question whether it is accurate, balanced and supported by evidence. Employees are more likely to challenge a decision that affects them than the use of AI itself. Where disputes arise, public sector employers should be able to show that AI informed the decision, but that the final outcome was reached through meaningful human review and judgement.

AI is changing the nature of grievances

Employees are increasingly using generative AI tools to research their rights, identify potential claims and draft formal grievances before they ever approach a solicitor or submit an ET1. Public sector HR teams are receiving documents that are lengthier, more legally framed and more wide-ranging than would previously have been typical from a self-representing employee. These grievances often look sophisticated and legally detailed, but volume does not necessarily equal substance. A grievance may raise multiple legal grounds, cite statutory provisions and deploy terminology that obscures what the employee is actually concerned about.

When HR receives an AI-generated grievance, one of the most effective early steps is to meet with the employee to allow them to explain their concerns in their own words. AI tools can produce documents that are technically articulate but do not accurately reflect the employee’s lived experience or primary concern. That meeting gives you the opportunity to identify the underlying complaint, to distinguish real concerns from AI-generated legal framing, and to demonstrate the procedural fairness that will matter if the dispute later progresses to tribunal. The key is to engage promptly and constructively, listen carefully, take thorough contemporaneous notes and establish what outcome the employee is genuinely seeking. Every stage of the grievance process should be properly documented, as the fairness and quality of that process will come under close scrutiny if the matter escalates into litigation.

This is also a timely moment to review whistleblowing policies. Public sector employers carry specific vulnerabilities in this area: Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) claims have seen the fastest growth of any claim type, with a 227% year-on-year increase, and whistleblowing disclosures are also rising sharply, up 112% year-on-year (Tribunal Statistics Quarterly: January to March 2026 - GOV.UK). Ensuring that managers understand the importance of responding to concerns thoughtfully and constructively from the outset, rather than dismissing them without proper consideration, is essential to managing these risks.

Culture and governance will determine success.

The greatest AI risks in public sector employment rarely arise from the technology itself. More often, they emerge where AI is adopted without clear accountability, oversight or understanding. Public sector bodies need to ensure that managers understand how to use AI appropriately and when human judgement must take precedence, and to foster a culture in which employees feel confident questioning AI-generated outputs rather than treating technology as infallible.

For more information on managing employment disputes in the government and public services sector, please contact DWF's Employment team.

Further Reading