Governance

Algorithmic Management

AI-based systems used to supervise and coordinate workers.

How the laws define this

Both definitions from the ILO Observatory on AI and Work in the Digital Economy agree on a common core: algorithmic management involves using algorithms and tracked data or data-tracking technologies to manage, supervise, or perform managerial functions, specifically citing work or task assignment alongside performance monitoring or evaluation. This shared baseline establishes that the concept centers on automating routine supervisory responsibilities. The primary point of divergence between the two descriptions lies in the specific outcomes covered and the noted impact on supervision. The first ILO Observatory on AI and Work in the Digital Economy definition limits its examples to traditional manager functions like work assignment and monitoring. In contrast, the second ILO Observatory on AI and Work in the Digital Economy definition expands this scope to include termination, while also noting that these systems often reduce human oversight. Compliance professionals must therefore assess whether a target process involves standard task management or extends to severe outcomes like termination alongside diminished human supervision.

Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.

What it triggers

The ILO Observatory on AI and Work in the Digital Economy sets out guidance on algorithmic management for member states, employers, and workers.source
The ILO Observatory on AI and Work in the Digital Economy describes algorithmic management as the application of algorithms and data-tracking technologies to perform functions traditionally handled by human managers.source

Definitions (2)

The application of algorithms and data-tracking technologies to perform functions traditionally handled by human managers, such as work assignment and performance monitoring.

ILO Observatory on AI and Work in the Digital EconomyDefinition 1 of 2

The use of algorithms and tracked data to manage and supervise work, including task assignment, performance evaluation, and termination, often reducing human oversight.

ILO Observatory on AI and Work in the Digital EconomyDefinition 2 of 2

Not to be confused with

AI-augmented decision-making

AI-augmented decision-making refers to AI systems assisting or making decisions affecting individuals, while algorithmic management specifically supervises and coordinates workers through algorithms.

Automated Decision-Making Tools

Automated Decision-Making Tools automate all or part of human decision-making in general, whereas algorithmic management applies algorithms to supervise workers including task assignment and performance monitoring.

Questions and answers

What guidance does the ILO provide on algorithmic management?

The ILO Observatory on AI and Work in the Digital Economy guides member states, employers, and workers on workplace AI and algorithmic management, created by the International Labour Organization in 2024.

What functions does algorithmic management cover according to the ILO?

Algorithmic management involves the application of algorithms and data-tracking technologies to perform functions traditionally handled by human managers, such as work assignment and performance monitoring.

Does algorithmic management reduce human oversight?

Yes, it includes the use of algorithms and tracked data to manage and supervise work, including task assignment, performance evaluation, and termination, often reducing human oversight.