AI in Hiring and Recruiting

While there is no single federal AI-in-hiring statute yet, the EEOC and the Department of Labor have issued some guidance when it comes to the implementations of AI tools in the hiring process. Regulators are keeping a close eye on four different areas:

1. Transparency and Notice - Employers should tell candidates when AI is used, what data is collected, how it's used, and which job-related qualifications are being evaluated.
2. Bias and Disparate Impact Caused - Title VII and other anti-discrimination laws apply to algorithms. If a tool screens people out in a way that disproportionately affects a protected group, that’s a problem. Even if it was unintentional.
3. Auditability and Validation of the Tool - Employers should validate that the tool they use predicts job performance for the role, monitor outcomes, and adjust if there is a disparate impact.
4. Data and Privacy - Employers must limit data to what is necessary, protect it, and retain it only as long as needed. Employers must be careful with any sensitive inputs. Data and privacy laws still apply.

Above all, the same anti-discrimination and privacy laws still apply, even when AI does the screening. The bottom line is that AI should not replace human judgment, and it should not replace compliance efforts.