German co-determination framework for employers (As of July 2026)
AI has rapidly moved from experimental use cases to everyday business applications. Employers are increasingly deploying AI tools to support a wide range of functions, including knowledge management, document drafting, recruitment, workforce planning, performance management, and personnel decision-making. As AI becomes more deeply embedded in workplace processes, companies operating in Germany should assess at an early stage whether and to what extent the involvement of the works council (Betriebsrat) is required.
In this alert, we include a table which provides an overview of the principal works council rights that must be considered when implementing AI systems in Germany. The early assessment of works council involvement is key to ensure a smooth and compliant implementation.