HAIR: The Use of AI in HR

HAIR: The Use of AI in HR

By Jack Sherwood

Although artificial intelligence (AI) is nearly old enough to be a baby boomer[1], it wasn’t until recently that mainstream media and society alike deemed it potentially threatening to the working class as we know it. While most of the concern regarding AI is the potential for replacement of human jobs, such as tax accountants, web developers, and sales managers[2], what are we to think when AI is actually hiring for those jobs?

81% of human resource (HR) leaders have explored or implemented AI solutions to improve process efficiency within their organizations.[3] Talent acquisition has been streamlined with the advents of resume screening and job matching algorithms. Employee engagement has gone from face-to-face conversation to chatbots and surveys. There are even recent efforts to utilize AI to combat bias in candidate sourcing. AI offers significant opportunities to improve efficiency, decision making and value creation[4], however it is paramount that companies planning to utilize AI in HR proactively establish a framework that promotes acceptable uses and outcomes. While liability surrounding AI generally remains up in the air[5], companies can enact standards and require basic training that could help mitigate problems down the road.

The first step for employers to achieve safe use of AI is to bridge what is known as the “preparedness gap”.[6] A recent Cisco study found that only 14% of global organizations are fully prepared to deploy and leverage AI, with more than half admitting serious concerns about the impact to business if they fail to act in the next 12 months.[7] Despite this low preparedness, 97% of global organizations reported that the urgency to deploy AI-powered technologies has increased in their company in the past six months.[8] This tension between urgency and under preparedness has led to readily available online AI certifications, from entities such Cornell and Wharton School of Business, that are designed to equip human resource and marketing professionals with a well-grounded understanding of AI in the context of a business.[9]

Once trained to a basic understanding of AI capabilities, employers must enact policies that promote fairness, transparency, trust, and safety in the use of AI.[10] The U.S. Equal Employment Opportunity Commission (EEOC) recently opined that the usage of AI which has an adverse impact on individuals of a particular race, color, religion, sex, or national origin is a clear violation of Title VII of the Civil Rights Act of 1964.[11] The EEOC encourages employers to conduct self-analyses on an ongoing basis to determine whether; their employment practices have a disproportionately large negative effect on a basis prohibited under Title VII, or treat protected groups differently.[12] Employers can generally address issues like this proactively if they continuously monitor the outputs of their algorithms.

In cases where undesirable results are linked to biases, discrimination, or ethical concerns, responsibility often extends across multiple levels of corporate governance, from end users of a particular system to management that oversees production. It is crucial for employers to establish clear policies, conduct regular audits, and ensure ongoing education and communication regarding the use of AI in HR. This approach can help mitigate risks and hold the relevant parties accountable while fostering a culture of responsible AI use within the context of human resources.

[1] What is the history of artificial intelligence (AI)?, TABLEAU, https://www.tableau.com/data-insights/ai/history#ai-birth.

[2] Bailey Shultz, What Jobs Are Most Exposed To AI? Pew Research Reveals Tasks More Likely to be Replaced, USA TODAY, (Aug. 4, 2023), https://www.usatoday.com/story/money/2023/08/04/jobs-most-exposed-ai/70523057007/.

[3] Cisco Launches New Research, Highlighting Seismic Gap in Companies’ Preparedness for AI, CISCO, (Nov. 14, 2023), https://investor.cisco.com/news/news-details/2023/Cisco-Launches-New-Research-Highlighting-Seismic-Gap-in-Companies-Preparedness-for-AI/default.aspx.

[4] Fouad Daidai & Larbi Tamnine, Artificial Intelligence and Corporate Governance, CEUR-WS (2023), https://ceur-ws.org/Vol-3474/paper6.pdf.

[5] Avi Loeb, Will Future AI Systems be Legally Liable?, MEDIUM, https://avi-loeb.medium.com/will-future-ai-systems-be-legally-liable-8ac4339da547

[6] Deloitte, AI Governance for a Responsible, Safe AI-Driven Future (2021), https://www2.deloitte.com/content/dam/Deloitte/us/Documents/risk/us-ai-governance-for-a-responsible-safe-ai-driven-future-final.pdf.

[7] Supra, note 3.

[8] Id.

[9] AI For Decision Making: Business Strategies and Applications, UNIV. OF PENNSYLVANIA, https://sl-onlinetraining.wharton.upenn.edu/ai-program-for-decision-making?utm_source=google&utm_medium=cpc&utm_term=ai%20certification&utm_content=19085774589-144534035992-638357152733&utm_device=c&utm_campaign=Whartondomain+-+Search-US-25_64-en+-+NB+-+DataCluster-AIML-PG-CAIML-Wharton+-+Strategy:Core-adgroup-AI+Certification+-+PT:Certification-MT:Phrase&gad_source=1&gclid=CjwKCAiAx_GqBhBQEiwAlDNAZuYWagm2MhMEnq1ztj96jEqgKFixzf_PqfhesLAcwIHf03dgbaCyhxoChyYQAvD_BwE

[10] Supra, note 8.

[11] Select Issues: Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964, U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, (May 18, 2023), https://www.eeoc.gov/laws/guidance/select-issues-assessing-adverse-impact-software-algorithms-and-artificial.

[12] Id.

Image source: https://www.forbes.com/sites/bernardmarr/2018/04/20/if-1-in-5-jobs-is-displaced-due-to-automation-what-does-that-mean-for-hr/?sh=48a708295868