Here’s How AI Could Present New Legal Challenges In The Hiring Process

We’ve all heard about the many ways artificial intelligence is likely to disrupt (for better or worse) the employment market for workers. But what about the managers and corporate executives tasked with hiring new employees?

According to some experts, using AI to recruit and onboard workers might be convenient … but there are some potentially costly hidden dangers.

Why it’s so appealing

AI is advancing rapidly and can analyze tons of information in a matter of seconds that would take a team of humans days to make sense of. And when an open position brings in a flurry of resumes, this technology could make quick work of winnowing down the pile into a few of the most qualified applicants.

But there are some inherent concerns about such use of AI. For starters, prospective employees might not know that a company will be using an automated system to sift through applications.

Then there’s the possibility that the algorithms engage in some sort of bias that would violate existing labor laws.

One labor attorney who has been studying the issue closely in recent years says executives need to be aware of the potential pitfalls of using AI to make hiring decisions.

New York leads the way

In 2021, lawmakers in the Big Apple approved a law requiring those responsible for hiring new workers to perform a “bias audit” of applicants prior to using AI for any such purposes. That mandate went into effect last year, and Amanda Blair explained that it could have a ripple effect not only in New York City but across the country.

“You don’t want to be caught off guard if a new law passes,” she said. “Talk to legal counsel. Develop relationships with vendors to serve as independent auditors, which is required in New York City’s law.”

Chris Agee May 23rd, 2024

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