Artificial intelligence – the word can elicit strong opinions. A Pew Research survey conducted consecutively in 2021, 2022, and 2023 showed a growing concern over artificial intelligence (AI) in daily life use, with 37% of respondents being “more concerned than excited” about it in 2021. That figure grew to 52% in 2023.
In recent years, we’ve seen the emergence of AI in human resources functions such as recruitment, performance evaluations, employee engagement, and data analysis. Some believe the use of AI in these areas can provide benefits such as streamlining the HR processes, reducing bias, and improving the decision-making process. Others question the ethical implications of AI usage in human resources.
Is there a way to use AI ethically without losing the “human” element in human resources? Today’s Astronology® will discuss finding the balance between AI, Ethics, & Compliance.
Ethical Considerations in AI Implementation
While AI can be a powerful tool to assist with decision-making, it’s important to acknowledge that these decisions affect actual humans. Equally important is to acknowledge that any AI creation is based on how the designer develops the algorithm. This means, unfortunately, that AI algorithms can unintentionally perpetuate bias if not properly designed or if trained on biased data. Additionally, there is also the question of disclosure. If not used with transparency and communicated properly, employees may feel like AI isn’t being used fairly or in a way that respects their rights and privacy.
Compliance with Legal Standards
Leaders in human resources must take responsibility with the use of AI tools and enforce procedures that comply with local and national employment laws and regulations. Two main areas of concern are the following:
- Data Privacy: Certain cities, states, and countries may require that you disclose any use of AI tools and data retention used in the hiring process. For instance, under the California Consumer Privacy Act (CCPA / CPRA), individuals must be told what personal data is being collected about them and also must have access to the personal data collected. In the European Union (EU), the General Data Protection Regulation has a robust set of guidelines for the collection and processing of personal data of individuals within the EU. Human Resources leaders should work in connection with an employment law expert to ensure that staff are properly educated and trained in these matters and that the organization can comply with these important standards.
- Equal Opportunity Compliance: The United States Equal Employment Opportunity Commission (EEOC) ensures that workplaces treat all employees and potential employees equally, regardless of protected characteristics such as race, color, religion, sex, national origin, age, disability, or genetic information. This also extends to ensuring that any use of AI systems aligns with anti-discriminatory laws safeguarding fair hiring and promotion practices.
There are many consequences to failing to comply with these legal standards. Not only are there monetary penalties and lawsuits, but also public consequences such as reputational damage and low employee morale.
Finding the Right Balance
Considering best practices can help organizations to find the balance with the use of AI tools and guaranteeing ethical and legal compliance. Two best practices include conducting regular audits of the tools and their usage. The other is keeping the human touch involved in all HR processes and programs.
- Audit for Fairness, Transparency, and Accuracy – Examine your AI tools and the organization’s usage for fairness, transparency, and accuracy. This can be done with the assistance of an employment lawyer or a third-party auditor.
- Human Oversight – Ensure that the AI tool is used to complement, not replace human judgement. This means you must include human review of any AI produced data to ensure accuracy before any decision making is made.
Artificial intelligence, when used properly, can aid in improving or streamlining some HR functions. It is imperative however, that this powerful tool is used responsibly and is not used as a substitute for human decision–making.
Does your organization use some form of AI in its HR functions? Has the use impacted your organization positively or negatively? Please share your thoughts below in our comment section!