Reducing Risk with the Hiring Process and the Use of Artificial Intelligence (AI)

 How does a company use AI responsibly in order to protect themselves as new regulations regarding the use of AI becomes available?

 

Policymakers want to regulate the use of AI to assist HR departments with their recruitment process and hiring decisions.  Specifically, they are wanting to focus on where the use of AI might lead to potential bias, discrimination or other unintentional risks.

 

There are many advantages to using AI-Powered Hiring Tools.  It enables the ability to assess the qualifications of large applicant pools quickly and accurately.  It is reported (by the American Civil Liberties Union) that 70% of employers were using AI in some fashion during their hiring processes.

 

According to a Fact Sheet released by the White House, part of Biden's Executive Order to ensure responsible use of AI across the country, is to protect workers including a pledge to "develop principles and best practices to mitigate (limit) the harms and maximize the benefits of AI for workers by addressing labor standards, workplace equity, health and safety, data collection and job displacement.  Job displacement occurs when employees who have an established work history is separated from the job or job elimination.  Job displacement at large, can have negative effects on displaced workers, such as having to adjust to a lower income, distress and not being as marketable as they once was.

 

GovDocs reports that employers should be proactive in preparing for and “monitoring new and upcoming state, county, and city laws” that may affect the compliance of their locations.  To date, there are only three jurisdictions that have passed laws that regulate the use of AI during the hiring process: Illinois, Maryland, and New York City.

 

As usual, our Compliance Department will be reporting new updates as we maneuver through this new-ish frontier!

 

Source(s):  GovDocs, received on April 18, 2024; White House, accessed on April 19, 2024