Most Corporate Ethics Codes Ignore AI, Leaving Employees Without Guidance

Advisory firm LRN's latest research exposes a significant gap in how organizations are preparing their workforces for an AI-driven workplace. The study found that fewer than one in ten codes of conduct explicitly tackle AI or technology ethics, potentially leaving employees without guidance on emerging risks tied to these tools.

While nearly all 2,000 full-time employees surveyed reported that their employers mandate acknowledgment of a conduct code, utilization of these documents has declined. LRN identified design flaws as a core problem, with nearly one in five workers saying their codes lack actionable guidance for real-world situations.

The timing of these findings coincides with a troubling trend: workplace misconduct is accelerating. An HR Acuity survey documented that 55% of employees either experienced or witnessed misconduct in 2025, up sharply from 41% in 2024 and approaching a seven-year peak. Among those surveyed, 38% reported encountering multiple incidents of misconduct.

Confidence in reporting mechanisms has also eroded. Only 66% of workers felt they could report misconduct without retaliation, a decline from 71% the previous year. LRN emphasized that employees require more than just a channel to flag concerns—they need conduct codes that outline investigation procedures, a feature absent from most codes the firm reviewed.

The absence of AI guidance in ethics codes compounds a broader problem: many employees lack clarity on how to use AI responsibly at work. Recent HR industry research has flagged concerns that workers may not understand how to maximize AI's benefits due to insufficient employer direction. A May Adecco Group report highlighted a perception gap, with employees less confident than executives that their organizations could successfully deploy agentic AI within a year.

LRN suggested that organizations need not overhaul their conduct codes entirely to address AI. Instead, companies can weave AI considerations into existing ethical principles such as accountability, fairness, transparency and sound judgment. According to LRN's analysis, "The strongest codes will not simply add more content," the report stated. "They will help employees navigate emerging risks with practical guidance that is easy to find, easy to understand, and easy to apply."

Beyond conduct codes, organizations can establish dedicated AI ethics policies that address two core questions: how will AI help employees perform better, and what safeguards will prevent AI from undermining organizational trust? Experts previously told HR Dive that these policies should function as living documents, updated regularly as technology and circumstances evolve, with HR playing a central role in their ongoing development.