Artificial intelligence (AI) is rapidly transforming how workplace investigations are conducted. Employers are deploying AI-powered tools to monitor employee communications, flag potential misconduct and support human resources and legal teams in identifying policy violations. These mechanisms can also help spot anomalies in timekeeping, expense reporting and access logs and can predict future risk based on behavioral patterns or prior workplace complaints.

The use of AI in investigations offers clear benefits. By automating the detection of misconduct, AI-powered analysis can surface subtle patterns that might otherwise be missed in thousands of communications or records, giving investigators a broader perspective on systemic risks.

However, integrating AI into workplace investigations raises significant issues, especially in California where there are strict laws designed to protect employee rights. One of the foremost concerns is privacy. California’s Constitution and the California Privacy Rights Act (CPRA) confer a strong right of privacy for employees. Employers should be transparent about how they monitor workplace communications and use AI tools, clearly disclosing these practices in employee handbooks and investigation protocols. Overreaching or covert monitoring can expose employers to legal claims.

Another issue is risk of bias. The California Civil Rights Council’s (CCRC) Employment Regulations Regarding Automated-Decision Systems, which took effect on October 1, 2025, state that it is unlawful for an employer to use an AI tool that results in discrimination against an applicant or employee based on a protected class under the California Fair Employment and Housing Act (FEHA). Employers should ensure that any AI solution they adopt is evaluated for fairness across different employee populations, so as to avoid disproportionately affecting employees in protected groups or replicating historical biases present in company data. AI vendors likewise should be vetted to make certain their tools are bias-free. 

AI should not undermine fundamental fairness in workplace investigations. AI-generated insights can support an investigation but should never be used as the sole basis for disciplinary decisions. Human oversight is vital: investigators must critically assess and interpret AI outputs. Any actions taken should be justified by a thorough review of all facts, not solely by algorithmic suggestions.

Additionally, data security is paramount. The information processed during an investigation is often highly sensitive, including personal employee data and complaint details. Employers must ensure that their AI vendors comply with all applicable data protection requirements, maintain robust security standards, and restrict data sharing or retention according to California law.

AI undeniably expands the toolkit for effective workplace investigations, but it should be viewed as a supplement — not a replacement — for experienced investigators. Ongoing audits are essential to ensure that AI-supported investigations remain fair, accurate and legally compliant. Employers must balance innovation with compliance, transparency and fairness. As the regulatory environment continues to evolve, seeking skilled legal assistance with investigations is more critical than ever.

Garcia & Gurney, A Law Corporation is dedicated to conducting thorough workplace investigations for companies in and around Alameda and Contra Costa counties. To learn how we can help your organization navigate these new challenges, please call 925-468-0400 or contact us online.