In an attempt to streamline the hiring process and reduce costs, many employers have embraced the use of artificial intelligence (AI). AI offers the potential to locate talent, screen applicants, administer skills-based tests, and conduct pre-hire interviews, among other tasks. However, while AI has its advantages, there are risks associated with its use, particularly when it comes to unintentional discrimination. This article explores the potential for discriminatory practices with AI in hiring processes, the Equal Employment Opportunity Commission’s (EEOC) focus on AI-based discrimination, legal consequences for employers, and strategies for mitigating risks.
AI and discrimination
Employers must be cautious when using AI in the hiring process, as discrimination can still occur even if unintentional. For instance, if AI systems inadvertently exclude individuals based on protected characteristics, it can lead to disparate impact discrimination. This means that even though there may not be a deliberate intention to discriminate, certain features of AI tools can screen out individuals with disabilities or pose questions that favor specific races, sexes, or cultural groups. This type of discrimination is illegal and can have far-reaching consequences.
EEOC’s Focus on AI-Based Discrimination
Recognizing the potential for AI-based discrimination, the EEOC has prioritized addressing this issue. The commission acknowledges that rooting out discrimination in AI systems is one of its strategic goals. This underscores the importance of employers taking proactive measures to ensure that their hiring practices and AI tools do not inadvertently discriminate against certain groups of individuals. It is vital for employers to understand that they bear the responsibility for any discriminatory outcomes, rather than placing the blame solely on AI vendors.
Legal consequences
Employers must be aware of the potential liabilities associated with using AI tools that result in unintentional discrimination. The EEOC can hold employers accountable for back pay, front pay, emotional distress, and other compensatory damages. Therefore, it becomes crucial for employers to understand the potential risks and take appropriate steps to mitigate them.
Mitigating risks of AI in hiring
To reduce the risks associated with the use of AI tools in hiring and performance management processes, employers should adopt certain strategies. Firstly, employers should question AI vendors about the diversity and anti-bias mechanisms built into their products. It is essential to ensure that the AI systems are designed to be inclusive and free from any inadvertent bias. Secondly, employers should not solely rely on vendors’ performance statistics but should also consider testing their company’s AI results annually. Regular testing can help identify any biases or discrimination and allow for necessary adjustments.
Protecting employers
To offer an additional layer of protection, employers should include an indemnification provision in any contract with an AI vendor. This provision safeguards the employer in case the vendor fails to design the AI system in a manner that prevents actual or unintended bias. By including such a provision, employers can shift some of the responsibility onto the AI vendors, ensuring accountability throughout the hiring process.
As employers embrace the use of AI in their hiring processes, they must be aware of the potential risks associated with discrimination. Ensuring that AI systems do not inadvertently discriminate against individuals based on protected characteristics is crucial. By following the EEOC’s guidance and taking proactive measures to mitigate risks, employers can create a fair and inclusive hiring process while protecting themselves from legal consequences. With proper due diligence and a commitment to diversity and inclusion, employers can leverage the advantages of AI technology while mitigating the risks of discrimination.