Ai in Recruitment: Skating on Thin Ice
Darryl Carlton
AI Governance Thought Leader | Digital Transformation Expert | AI Pioneer since 1984 | Bestselling Author in Cybersecurity & AI Governance | Passionate about AI responsible use in Higher Education, Business & Government
Artificial Intelligence (AI) is becoming increasingly prevalent in recruitment, employee engagement, hiring, and promotion. The European Union and various states in the USA and elsewhere have either introduced or are planning to introduce legislation to regulate the use of AI in these areas.
While it is generally agreed that there is a lack of regulation and external auditing for AI in recruiting [1], leading to ethical and legal consequences regarding discrimination in the job market [2], several US states and the EU AI Act have introduced laws that prioritise transparency and fairness in using AI for recruitment and hiring processes. These laws not only mandate that employers disclose the use of AI to job applicants but also ensure that AI tools do not discriminate based on protected characteristics [3]. This emphasis on transparency and fairness provides a reassuring framework for the ethical use of AI in recruitment.
States like Illinois and New York have enacted laws addressing the potential for bias and discrimination in AI-driven hiring tools. These laws require regular audits of AI systems to ensure they do not disproportionately impact specific groups and mandate the use of unbiased data in training AI models.
Some states are extending AI regulations to cover employee engagement and promotion. These laws often include provisions for transparency in how AI tools are used to evaluate employee performance and make promotion decisions, ensuring that these tools are used fairly and equitably.
The EU AI Act prohibits placing on the market, putting into service, or using AI systems for recruitment and selection if those systems make decisions affecting the terms of work-related relationships, promotion or termination of work-related contracts, task allocation based on individual behaviour or personal traits, or the monitoring and evaluation of a person's performance at work [4].
The SCL AI Clauses Project suggests that companies include clauses about unlawful discrimination in their AI contracts. This is especially relevant for HR, as AI used for recruitment could lead to biased outcomes [5].
The Australian Government’s AI Ethics Framework notes that the goal of using AI in recruitment is to find candidates "in a fair and unbiased way". This optimistic view of AI's potential in recruitment also acknowledges the need to create AI systems that comply with anti-discrimination laws, providing a balanced perspective on the use of AI in HR.
The Australian Government’s AI Assurance Framework highlights that AI systems should respect human rights, diversity and the autonomy of individuals, which is important to bear in mind for any AI system used in HR.
The Australian Voluntary AI Safety Standard encourages organisations to consider the risks and harms associated with different AI use cases, including those related to human resources.
In summary, most countries are actively introducing legislation to regulate the use of AI in recruitment, hiring, employee engagement, and promotion. This global trend underscores the importance of ensuring transparency, preventing bias and discrimination, and promoting fairness in using AI tools. As AI continues to evolve, it is likely that more jurisdictions will introduce similar regulations to address these critical issues, making us all part of a larger movement towards ethical AI use.
REFERENCES:
[1] Kim, T., & Son, S. (2023). A Study on Fair Hiring Procedures. Institute for Legal Studies Chonnam National University. https://doi.org/10.38133/cnulawreview.2023.43.2.215 .
[2] Fernández-Martínez, C., & Fernández, A. (2020). AI and recruiting software: Ethical and legal implications. Paladyn, Journal of Behavioral Robotics, 11, 199 - 216. https://doi.org/10.1515/pjbr-2020-0030 .
[3] Acemoglu, D., Autor, D., Hazell, J., & Restrepo, P. (2022). Artificial Intelligence and Jobs: Evidence from Online Vacancies. Journal of Labor Economics, 40, S293 - S340. https://doi.org/10.1086/718327 .
[4] EU AI Act Annex III (4) Employment, workers management and access to self-employment: (a) AI systems intended to be used for the recruitment or selection of natural persons, in particular to place targeted job advertisements, to analyse and filter job applications, and to evaluate candidates; (b) AI systems intended to be used to make decisions affecting terms of work-related relationships, the promotion or termination of work-related contractual relationships, to allocate tasks based on individual behaviour or personal traits or characteristics or to monitor and evaluate the performance and behaviour of persons in such relationships.
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[5] "AI Clauses Project," is a guide created by the Society for Computers & Law (SCL): C1.14 Prior to installation of the AI System the Supplier will carry out testing in accordance with Good Industry Practice and appropriate to the intended purpose of the AI System to identify any output or model performance which may result in an individual being treated differently on the basis of a protected characteristic set out in the Equality Act 2010.
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4 周This is a very important and timely discussion! I appreciate this post highlighting the increasing need for regulation of AI in the recruitment space. It’s great to see that both the EU and various US states are taking proactive steps to address the ethical and legal concerns surrounding AI in recruitment. The emphasis on transparency and fairness in these regulations is crucial. Employers must be transparent about their use of AI tools, ensuring that candidates understand how their data is being used and how AI impacts the hiring process. Additionally, mandating regular audits and unbiased data training is vital to prevent potential bias and discrimination.