Take steps to mitigate AI risks in HR

According to the Equal Employment Opportunity Commission (EEOC), nearly 8% of employers use artificial intelligence (AI) technology to make employment decisions. The prevalence of AI technology in the employment arena shouldn’t surprise HR professionals with long to-do lists. AI can assist with résumé reviews, training, and employee evaluations. While AI can be a powerful tool, it can also result in violations of Title VII of the Civil Rights Act of 1964 and the Fair Labor Standards Act (FLSA) if used incorrectly.

AI discrimination

Common Title VII issues arise with algorithms that screen résumés. Algorithms are often “trained” to compare new résumés with past résumés of high-performing employees. Potential disparate impact discrimination could occur if the past résumés consist of candidates from a predominant group.

Imagine an industry that historically has more male employees than female employees, such as engineering. In such an industry, the screening algorithm may eliminate résumés from female candidates. Gender in a résumé may be revealed through education, civic activities, or even an applicant’s name. When the AI tool finds these “female” characteristics, it may eliminate female applicants from consideration.