Artificial intelligence in hiring: Innovation meets legal risk

The use of artificial intelligence (AI) in the hiring process promises a level of efficiency that would have been impossible just a few years ago. Employers can now deploy AI tools that parse applications almost instantly; score candidates on a 1-to-5 scale, with accompanying reasoning; automatically sort applicants into pools; and even scan LinkedIn and other social media profiles to supplement evaluations. Some software claims to reduce screening time by as much as 75%. 

Yet this technological leap forward isn’t without concern. As AI becomes more commonly embedded into our day-to-day life, it’s almost inevitable it will become part of employment decision-making. Regulators have begun to examine whether these supposedly neutral systems produce disparate impacts on applications for hire.

Recent settlement

This year, the U.S. Department of Justice’s (DOJ) Civil Rights Division announced a settlement with a Virginia-based IT services company, resolving allegations that it violated the Immigration and Nationality Act. 

According to the DOJ, the company used an AI tool to generate job postings that improperly limited applicants based on citizenship status, including language restricting consideration to individuals holding H-1B, Optional Practical Training (OPT), or H-4 visas—restrictions that aren’t authorized under federal law.

What is Wisconsin doing?