Artificial Intelligence, Employment, and the Rise of Cyberfinancial Risks: Regulatory and Arbitration Challenges in the Engineering and Construction Sector

This article examines the implications of artificial intelligence (AI) on employment law, arbitration, and cybersecurity within the United Arab Emirates (UAE). AI-driven human resource (HR) functions payroll, recruitment, performance evaluation are efficient, but can also contribute to cyberfinancial risks (such as payroll diversion, deep fakes), privacy concerns, and algorithmic discrimination/bias. The engineering and construction (E&C) industry in the UAE is particularly prone to such risks, as the vast project workforce, long chains of subcontracting, and digitized project-management systems form an overcrowded ecosystem of AI-enabled HR and payment systems. The existing system in UAE, fragmented across labor law, cybercrime law, and arbitration law, are not well placed to address these cross-cutting issues. The use of AI-generated and manipulated digital evidence in construction disputes is becoming more and more visible, but the admissibility and authentication of such evidence are not well-developed yet. This has placed employers, employees, and even tribunals in crossroads. The article recommends a unified regulatory framework able to establish AI-specific arbitration principles regarding the admissibility and authentication of AI-generated evidence; mandate risk assessment and incident reporting in HR systems; reinforce cybersecurity obligations in relation to AI-related threats; and embed AI ethics (fairness, transparency, accountability) into labor-law reforms.