The paper attempts to consider the process of integration of Artificial Intelligence (AI) into labor relations and the development of a governance framework to cope with the future workforce. While AI continues transforming different sectors—healthcare, education, retail, etc.—its process of integration into human resource management and labor relations is no small task. Promises to get rid of tedious tasks at work and improve productivity are weighed against fears of job displacement and too fast an automation pace. The current research employs a mixed-methods methodology by conducting qualitative research on labor laws, policies, and ethical frameworks in AI, along with quantitative data that will be generated through surveys and interviews of stakeholders in the labor market in Jordan. After tracing the existing governance model and understanding how AI impacts labor relations, the study will develop a proportionate framework addressing ethics, regulation, and social impacts related to AI adoption. It also underscores that more studies and multi-stakeholder dialogues are required to ensure the AI technologies go the extra mile in protecting workers’ rights along with innovation and economic growth.