A growing majority of employees believe their employers use AI tools to track their activity, and they want the law to require full disclosure of that monitoring. According to the latest State of Hybrid Work survey from Owl Labs, 82% of workers now favor making such disclosure a legal obligation.

What You Need to Know

The survey polled 8,000 workers globally and found that 58% already know or suspect their employer uses AI monitoring tools. Almost all respondents who want disclosure cite a breakdown in workplace trust. The findings come as companies accelerate AI adoption without clear privacy guardrails for employees.

Workplace Trust Under Strain

The data paints a picture of a fracturing relationship between employers and employees. Almost 38% of workers now engage in strict “work to rule” behavior, limiting tasks to what is explicitly in their job description. That number jumps to 47% among Gen Z and 42% among millennials, suggesting younger workers are especially wary of overreach.

Beyond monitoring, the survey found that AI tools have raised performance expectations. Workers report increased stress as they try to keep pace with AI-augmented productivity demands. The trend points to a larger shift: technology meant to boost output is also amplifying pressure.

  • Work to rule: 38% of all workers now adhere strictly to written job duties, up from previous years.
  • Job hugging: 35% of respondents admit to staying in unfulfilling roles, with Gen Z at 43%.
  • Billboard days: 30% of employees schedule office time to coincide with senior leaders, more commonly men (36%) than women (25%).

Why This Matters

The push for mandatory disclosure of AI monitoring signals a turning point in workplace power dynamics. Without legal requirements, employees have little recourse to know how their data is collected or used. This could affect retention for companies that fail to build transparent policies, especially among younger workers who already feel mistrust. Legislators may face growing pressure to act as more employers adopt surveillance tools.

Frank Weishaupt, CEO of Owl Labs, acknowledged the tension in a statement. “Employers have seen productivity gains as a result of AI, but need to ensure that the technology and policies support the increasing pace of change,” he said. “Doubling down on employee experience, including better technology, is going to be a key part of keeping best people.”

What Comes Next for AI Monitoring Rules

The survey arrives as regulators in the UK and EU consider broader AI transparency rules. While no specific legislation mandates disclosure of workplace monitoring yet, the strong public sentiment suggests companies should prepare for new obligations. Almost every industry that uses digital tools for remote or hybrid work could face scrutiny.

For now, the burden falls on employers to voluntarily disclose their monitoring practices. The survey indicates that failing to do so risks deepening the trust gap and driving more workers toward rigid work-to-rule behavior.