Artificial Intelligence to Shake Up Employee Monitoring

COVID-19 had a transformative effect on how we work, leading to an unprecedented explosion in remote working. With more employees working from home than ever before, the need for effective and efficient monitoring has never been more critical.

The inherent challenges of overseeing a dispersed workforce have highlighted the limitations of traditional management methods. As a result, organizations have increasingly turned to time tracking software to navigate these uncharted waters.

The unique capabilities of artificial intelligence to enhance and monitor employee performance intelligently have positioned it as a vital tool in this new working reality.

“Before the pandemic, roughly 30% of large employers used some form of employee monitoring, now 60% of larger employers are using these technologies to track at least some of their employees.” – Wall Street Journal

The advent of artificial intelligence has brought significant changes in various aspects of life, and the workplace is no exception. AI can revolutionize how we manage and monitor employee performance.

But while these changes can bring numerous benefits, they also bring up crucial questions about privacy, trust, and ethical use.

A significant advantage of AI is its capability to automate many aspects of employee monitoring. Tasks that once required human intervention, such as observing computer use, internet browsing, and communication logs, can now be performed seamlessly by AI.

The commercial performance consultancy, Tollejo, notes a surge in the popularity of AI software for monitoring employees, particularly those working from home. By utilizing AI surveillance technologies, organizations can collect an extensive range of data on employees’ behaviors during work hours.

This wealth of data can provide invaluable insights, helping organizations spot patterns or anomalies that might signal potential problems.

“Sales of monitoring software is booming… AI’s now prominent role in employee monitoring puts the industry front-and-center of the AI-ethics debate.” – Tollejo

The value of AI extends beyond mere data collection. Sophisticated AI algorithms can study the gathered data, analyze employee behavior patterns, and detect unusual activities. For instance, these algorithms can identify potential security threats, breaches of company policies, or even suspicious actions like unauthorized access or data leaks.

“Essentially, every employee is constantly producing data, which can be used to analyze performance, wellbeing, and behavior…If done right and with appropriate gamification tactics, AI-enabled employee performance assessment can greatly impact job satisfaction and engagement.” – Andrey Koptelov, Towards Data Science

The early identification of such risks allows companies to take proactive measures to minimize potential damage. By swiftly addressing these anomalies, businesses can improve their security posture and protect their valuable assets.

“It’s fascinating that people are more excited about AI rescuing them from burnout than they are worried about it eliminating their jobs.” – Adam Grant, author, and organizational psychology professor

Machine learning, a subset of AI, can delve deeper into employee productivity. By examining the time employees spend on different tasks or projects, AI can identify areas of inefficiency and suggest improvements.

This type of data analysis can yield valuable information that can be used for multiple purposes. For example, performance reviews can be enhanced with hard data, resources can be allocated more effectively, and workflow can be improved to increase overall efficiency. The end result is a more streamlined, productive working environment.

AI isn’t just about improving workflow efficiency or reducing security risks. It can also play a significant role in managing workplace culture. For example, AI can analyze employee communication channels, such as emails, chats, and social media posts, to gauge sentiment.

“Responding to the suffering of employees in a timely manner enhances employee wellbeing, resilience, engagement, commitment and loyalty… With AI pattern recognition, it will likely be possible to begin preparing to provide support before the employee even realises they need it.” – Dr Ace Simpson

This allows AI to detect signs of dissatisfaction, stress, or interpersonal conflicts. By identifying these issues early, employers can intervene and provide support when it’s needed most, fostering a healthier work environment and improving employee well-being.

Another crucial role of AI employee monitoring software is ensuring compliance with various regulations, company policies, and ethical standards. AI tools can automatically scan through employee communications, documents, or transactions, searching for any compliance violations.

“AI can monitor internal communications – emails, chat messages, call transcripts – to detect language that indicates possible unethical or non-compliant behavior. By analyzing sentiment (tone, emotion) and intent (meaning behind words), these systems flag communications that human supervisors should review.” – AI Automated Legal Compliance Monitoring: 20 Advances (2025)

There is a clear value for AI in helping organizations maintain their legal and ethical standing. With automatic alerts and reports, businesses can address issues swiftly, reducing the risk of non-compliance and the potential for damaging legal disputes.

The rise of remote work has given AI an increasingly crucial role in employee monitoring. By keeping track of when remote employees log in and out, calculating active working hours, and evaluating overall productivity, AI helps ensure accountability even in a remote work setup.

“In a survey last year, online privacy and security provider ExpressVPN said it found 61% of companies are using AI-powered analytics to track and evaluate employee performance.” – Computerworld

Managing remote teams can pose unique challenges, but AI can help bridge this gap. It allows companies to maintain a high level of oversight, ensuring that remote employees remain productive and accountable.

AI doesn’t just monitor and evaluate employee performance; it can also play a pivotal role in employee development. By providing personalized feedback and recommendations, AI can suggest targeted training or coaching programs based on individual performance data.

“AI can provide personalised feedback, help employees navigate complex situations, and offer guidance tailored to individual needs and learning styles… Its capabilities in empathy, summarisation, and customisation make it a powerful tool for coaching and mentoring.” – Ethan Mollick, Financial Times

By identifying areas for improvement, AI can foster skill-building and personal development. The end result is a more effective workforce, as employees can work on their weaknesses and enhance their strengths.

Despite its significant potential, AI employee monitoring is not without its challenges. Striking the right balance between boosting productivity and respecting privacy is delicate. Businesses that can achieve this equilibrium will thrive, while those that fail risk obsolescence.

Clear guidelines on AI use should be defined by organizations and communicated transparently to their employees. This open dialogue can help maintain trust and foster a positive working environment, despite the increased surveillance.

“AI monitoring can also infringe on employees’ sense of autonomy and freedom in the workplace… Employers must navigate the fine line between utilizing AI to streamline operations and respecting the privacy and rights of their employees.” – Layman Litigation

However, the task of striking this balance isn’t the sole responsibility of individual organizations. The industry as a whole must participate in the discussion and help shape appropriate policies for implementing AI in the workplace.

We sit at a point that will define our employee’s trust and interaction with AI management. If we get this wrong, then the industry may take years to rebuild the trust.