Source: OpenTools.ai

OpenTools.ai reports that a US appeals court has ruled in favor of Alphabet (Google’s parent company), affirming the legality of using AI-driven systems to manage layoffs, despite opposition from labor unions. The ruling marks a pivotal moment in labor law, where algorithmic decision-making in employment has received judicial backing.

The court found that the use of AI to assess productivity and organizational needs does not inherently violate employment statutes, as long as procedural fairness and anti-discrimination laws are upheld. Labor unions argue this undermines collective bargaining and transparency.

The case is expected to influence future regulatory debates on AI and labor rights, particularly concerning due process, human oversight, and accountability.