Navigating the New Frontier: AI, Labour Law, and the Changing Dynamics of Employment in an Era of Uncertainty

The development of artificial intelligence (AI) is radically transforming the labour market, affecting the way employment is organized, supervised, and protected. The automation of HR processes, recruitment, and employee evaluation poses new challenges for labour law, both in Poland and at the European Union level. The article analyses legal regulations, including the EU AI Act, the Council of Europe Convention on AI, and the Platform Work Directive. Particular attention is paid to issues related to “algorithmic management,” the lack of transparency in decisions made by AI systems, and the blurring of the line between employment and self-employment. A dogmatic-legal method is used to assess the effectiveness of existing solutions and identify regulatory gaps. The conclusions point to the need to introduce a definition of “employee in an algorithmic environment,” mandatory high-risk audits, and maintaining the “human-in-the-loop” principle. The aim is to ensure a balance between economic innovation and the protection of employees’ rights in the era of digital transformation.