Artificial Intelligence (AI) is transforming the workplace, particularly in recruitment and management. HR professionals are at the forefront of integrating these technologies while ensuring that their organizations remain compliant with the evolving legal landscape. While the adoption of AI promises to enhance HR efficiency, it also introduces potential risks, including bias and discrimination. Your role is crucial in navigating these challenges to create a fair and inclusive workplace.
Embracing AI in HR Practices
AI offers a range of tools that can streamline HR processes. From automated resume screening to predictive analytics for employee performance, AI has the potential to make hiring and management more efficient. For example, algorithms can quickly sift through large volumes of resumes to identify top candidates or analyze candidate responses during interviews to predict job fit. These capabilities can significantly reduce the time and effort involved in traditional HR tasks.
However, it’s essential to recognize that AI is not infallible. While it can help reduce some forms of bias, it can also perpetuate or even exacerbate existing biases if not carefully managed. This is where HR professionals play a critical role.
Addressing Potential Biases
AI systems are only as good as the data they are trained on. If the training data contains biases, the AI system can replicate those biases in its decisions. This can lead to discriminatory practices, whether based on age, gender, race, or other protected characteristics. For instance, if an AI system is trained on resumes predominantly from male candidates in the tech industry, it might develop a bias against female candidates.
Recent lawsuits, such as those involving iTutorGroup and Workday, highlight the real-world implications of AI-related biases. These cases demonstrate that AI can lead to significant legal and reputational risks for companies. Therefore, it is crucial for HR professionals to proactively address these issues. HR professionals can control the data entered into AI systems by meticulously curating and cleaning the data sets to remove any historical biases, regularly updating the data to reflect current, diverse candidate pools, and working closely with their AI vendor partners to ensure that the algorithms are trained on balanced and representative samples.
Ensuring Fairness and Compliance
To ensure that AI tools are used responsibly and effectively, HR professionals must adopt several key strategies. One of the first steps is to clearly define responsibilities related to anti-discrimination laws and bias prevention in contracts with AI vendors. Relying solely on indemnification clauses is insufficient. Contracts should explicitly detail each party’s duties in compliance with anti-discrimination laws.
Transparency is another critical aspect. HR professionals should thoroughly vet third-party vendors and AI tools before integration. Understanding how the AI systems work, including the algorithms and data used, is essential. Transparency from AI vendors about their systems’ inner workings allows HR professionals to identify and address potential biases proactively.
Regular audits of hiring processes and AI tools are also necessary. These audits should include testing for disparate impact to ensure that AI systems do not inadvertently discriminate against certain groups. Continuous monitoring and evaluation help identify and mitigate biases early.
Training is vital as well. AI tools should complement, not replace, human judgment. Providing training for HR staff and management on how to effectively use AI tools and recognize potential biases is essential. Understanding the basics of AI operations and their impact on discrimination ensures that AI-driven decisions are fair and equitable.
Staying updated on legal developments is another crucial responsibility. The legal landscape surrounding AI is rapidly evolving. HR professionals must stay informed about new regulations and guidelines from bodies like the Equal Employment Opportunity Commission (EEOC) and the Department of Labor (DOL). Regularly reviewing legal developments and seeking guidance from legal counsel will help ensure that the organization remains compliant and minimizes the risk of discrimination claims.
Incorporating New Regulations
Recent developments, such as the Notice of Proposed Rulemaking issued by the California Civil Rights Department (CRD) on May 17, 2024, provide further guidance for HR professionals. Under current California employment discrimination regulations, if an employer intends to deny an applicant based on the applicant’s criminal conviction history, it must first make an individualized assessment of whether the conviction history has a direct and adverse relationship with the specific duties of the job.
The proposed regulations clarify that using an automated-decision system alone does not constitute an individualized assessment. Employers using such systems to make preliminary decisions to withdraw conditional job offers must provide the applicant with a copy or description of any report or information from the automated-decision system, related data, and assessment criteria used. This requirement ensures transparency and fairness, giving applicants the opportunity to understand and potentially contest decisions made by AI.
The Bottom Line
AI holds great promise for HR professionals, offering tools that can streamline processes and enhance decision-making. However, the potential for bias and discrimination cannot be ignored. By implementing proactive measures—such as detailed contracting, thorough vetting, regular audits, comprehensive training, adherence to evolving regulations, and staying informed on legal developments—HR professionals can mitigate these risks.
Your role is critical in balancing the innovative benefits of AI with the need for fairness and compliance. By taking these steps, you can help ensure that AI contributes positively to your organization’s recruitment and management practices, creating a more inclusive and equitable workplace.
Jonathan J. Brown, a Senior Associate Attorney at Pearlman, Brown & Wax, LLP, represents employers in all areas of employment law including wrongful discharge, discrimination, harassment, retaliation, accommodation, interactive process, and wage and hour claims.