Civics Class: Ethics, Privacy, and Guardrails in AI for Workers’ Compensation

The Trained A-Eye

Welcome back to class, classmates! We are mid-way through the semester and at this point, we have handled math, lab work, and even a trip to the library. Now, time for Civics Class. Civics is where we talk about rules, responsibilities, and what it means to be a good digital citizen in this brave new world of AI. Just like in workers’ compensation, ethics is a foundational component into how we work. Ethics shapes trust. Privacy protects people. Guardrails ensure the work we do serves rather than harms. As AI becomes woven into the daily fabric of claims, communication, and care, it is our job to understand how to use it responsibly, transparently, and with integrity.

This project continues to be inspired by my professor friends Chris Snider and Christopher Porter, the Innovation Profs, who created the AI Summer School series. Their session on AI Ethics reminded me that every great system, whether human or machine, depends on quality values and clear boundaries. The Innovation Profs talk about AI’s “ethical cast of characters,” and I smiled because it feels a lot like a video game. (For me, old school Nintendo of the 1980s.) Each character has a challenge to defeat before advancing to the next level of responsible use. The framework is clear, clever, and what we need in the world of workers’ compensation. Thus, today I present you with a guide for navigating both the risks and the responsibilities that come with innovation.

Meet the Ethical Cast of Characters

Every hero needs to know their villains. When it comes to AI, we face a lineup of ethical challenges with each one requiring awareness, reflection, and action. Think of these as the “boss levels” of the workers’ compensation industry’s AI journey. Time to meet the cast.

The Hallucination Ghost

Hallucination is when AI confidently makes something up. It is the ghost that slips false facts into reports, misquotes laws, or invents data that sound believable but are not true. In workers’ compensation, that can lead to real consequences such as a misrepresented statute, an inaccurate claim summary, or an incorrect medical guideline. Oh, and we have seen this play out in some of our legal groups. The fix? Verification. Always confirm AI-generated content with primary sources, policy manuals, or credible data. If AI writes a letter, check it like you would check a new adjuster’s first draft. Trust is earned, not automated. And always fact check your sources, especially statutes and compliance-related information. Not doing this can hurt you, your organization, and the people you serve.

The Bias Monster

Next up is Bias. Bias is a sneaky monster that feeds on the data AI was trained on. Because datasets come from human writing, they can reflect human biases around race, gender, or occupation. In workers’ compensation, that might look like stereotypes about certain job types or assumptions about injury severity. The solution is to train AI better and audit the results. Ask, “Who benefits from this outcome?” and “What voice might be missing here?” Ethical use of AI means seeing bias before it becomes behavior. We all have bias. Being aware of it and then doing something about it help regulate our work.

The Copyright Keeper

Enter the guardian of Intellectual Property. AI learns from enormous amounts of existing content, which sometimes includes copyrighted material. For our industry, this means being cautious about how we use and distribute AI-generated materials. This becomes especially important in training, marketing, or consulting work. Always make sure content is original or appropriately cited. Give people credit where credit is due. Think of it as respecting your colleagues’ work the same way you would want your own reports or playbooks respected. In short: cite your sources and stay classy.

The Privacy Protector and Security Sentinel

These two travel together like a superhero duo: Privacy and Security. They guard the sensitive data we handle daily including but not limited to medical information, payroll details, employer records, and claim notes. AI tools can make processing faster, but only if we protect what matters most. Never input personally identifiable information or claim-specific details into a public model. Use secure, approved systems for analysis, and anonymize examples whenever possible. Data privacy is a promise to the people we serve. Flip the script. Would you want your personal data input into public AI? Probably not.

The Green Guardian

Meet Environmental Impact. The Green Guardian reminds us that technology, while immaterial is not invisible. Training large AI models takes massive energy and water resources. While that may feel far removed from workers’ compensation, this is a nudge to think sustainably about digital practices. Do we really need to regenerate that prompt five times? Are we saving outputs for reuse to minimize resource waste? Ethics includes stewardship, meaning that we all have a responsibility to take care of the environment while we innovate. Even small choices can ripple into big change.

The Workforce Transformer

Workforce Displacement is less a villain and more a complex character in this story. AI changes how we work in workers’ compensation, not necessarily eliminating people. This is where we must reframe the work, the purpose of what we do, and highlight the significance of human connection. As we look at work in workers’ compensation, some of these work tasks include automation handling repetitive documentation while humans focus on empathy, negotiation, and connection. Our challenge is to upskill, reskill, and empower our teams to use AI as a collaborator, a resource, and a tool. The most successful professionals will be those who learn to lead AI versus trying to compete with it. This transformation is an invitation to grow. Work smarter, not harder. And do it well.

The Misinformation Magician

Now comes Misinformation. This is the trickster of the bunch of our video game-based characters. This is the risk of using AI-generated content without fact-checking or of seeing false information circulate in claims communication or policy documents. For example, an AI summary might misinterpret new case law or outdated medical guidance. The antidote? Transparency. When you share AI-assisted work, disclose it. When you publish, verify it. Misinformation only wins when we fail to slow down and think critically.

The Harmful Content Hydra

Last, and certainly not least, is Harmful Content. This character is the many-headed hydra of the internet. AI models are trained on massive datasets and as a result, they can accidentally reproduce harmful or offensive material. This is especially critical when communicating with injured workers, where empathy and psychological safety matter. Always review tone and phrasing, especially when dealing with sensitive topics like pain, disability, or termination. Our words can either heal or harm. Choose them with heart and remember, these word choices ultimately reflect your character, personal brand, and impact your organization. 

How to Stay Ethical in an AI World

How do we defeat this cast of characters? With knowledge, clarity, and accountability. Some challenges can be managed through vigilance and good human editing to ward off hallucination and bias. Others, like privacy, intellectual property, and misinformation, require organizational policies and sometimes even legal oversight. Ethics is a value and impacts a collective organizational culture. The key is to integrate ethics into every step of the process. Build privacy policies that cover AI use. Train employees on proper input boundaries. Establish internal review procedures for AI-generated communication. And most importantly, lead by example! If you are transparent, intentional, and kind in your use of these tools, your team will follow suit. Ethics begins with everyday choices, not policy manuals. Your employees and peers are watching. What is not addressed and brought to light affirms behavior. 

Why This Matters in Workers’ Compensation

Workers’ compensation runs on trust between employers and employees, between claims professionals and injured workers, and between companies and their partners. Trust is built when our words match our values. Using AI responsibly ensures that we maintain that trust while embracing innovation. We can use these tools to improve efficiency and access, but the human element must always lead. We can approach AI through the lens of care by protecting privacy, honoring fairness, and maintaining transparency. When we do so, we strengthen the entire ecosystem. We prove that progress and ethics can coexist beautifully. In a space that touches people’s lives so deeply, this combination is essential. 

Class Takeaway

AI ethics builds a world where innovation supports integrity and efficiency amplifies empathy. As we move forward, remember the ethical cast of characters, and keep your own guardrails strong. Lead with curiosity, protect with conscience, and communicate with compassion.

Your homework: Review one area of your work where you are already using or planning to use AI. Identify which ethical “character” might appear there: hallucination, bias, privacy, misinformation. Create a plan to address it. Responsibility starts with awareness and ends with action.

Class dismissed. ✨

Next week: Economics Class – Implementing AI for Efficiency, Savings, and Smarter Spend.

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