Regulations on AI in HR Tech And How To Stay Ahead Of Them

Artificial intelligence has been sweeping all industries and becoming more and more pertinent for organizations to adopt to keep up with the competition. No matter the sector, it’s likely that artificial intelligence has reared its head within the last few years.

One industry that is not immune from the artificial intelligence revolution is human resources and talent technology. Nationwide, conversations about the use of AI in the hiring process have been circulating in recent years, resulting in the creation of different pieces of legislation to help combat unintentional bias brought in through artificial intelligence.

92% of organizations plan to increase their use of AI technology in at least one area of HR. (Source)

For hiring purposes specifically, AI has been found to accidentally reinforce biases it was implemented to reduce, causing legislators to call upon employers to keep the AI or algorithmic tools they use in the hiring process audited frequently. 

But why? And why now? Artificial intelligence isn’t new, but its widespread use and implementation – especially in the HR sphere – is. Experts have found instances of bias in AI, and it is a serious enough problem that organizations are scrambling to ensure they meet the requirements of pending legislation. Keep reading to learn more about the regulations emerging in HR technology, some notable laws either in place or will take effect soon, and where talent technology professionals can go from here.

What Warrants Regulations on AI In HR Tech?

AI implementation has been skyrocketing for years, but the regulation of these tools has been lacking. We’ve gotten to a point where there are concrete findings using talent data to confirm that AI can usher in bias unintentionally.

For the most part, the widespread adoption of AI in multiple fields was initially implemented to mitigate inherent biases held by people. After all, AI is software and has been thought to not perpetuate or instill its own biases in its results. However, artificial intelligence is not as infallible as we once thought.

Get an inside look at what the latest regulations on #AI in the #HRTech realm are and what they mean for #TalentProfessionals via @TalentTechLabs: Share on X

We’d be remiss not to say: that these laws are not anti-AI explicitly; they are pro-regulation. None of the bills passed or suggested that AI shouldn’t be used or should be wholly abolished from your tech stack. 

On the contrary, these laws are set in place to protect employers and potential candidates from bias in these types of technology. While some talent professionals view this legislation as imposing on their processes, it truly helps organizations, in the long run, to keep their tools up to date, efficient, and fair as possible.

Notable Laws About AI In HR Tech

Much like talent professionals, the Department of Justice and the Equal Employment Opportunity Commission have become increasingly interested in how these AI technologies could influence hiring and other decision-making processes. Rightfully so, considering only 44% of executives said their organizations have well-established policies and practices to support data responsibility and AI ethics. 

Let’s take a look at some of the most recent and eye-catching legislation passed around the country and shed light on what might be next for AI in the hiring process.

  • NYC Law – Passed in 2021 and will go into effect in January 2023. The new law regulates employers and employment agencies’ use of “automated employment decision tools” on candidates and employees residing in New York City.
  • Maryland’s H.B. 1202 – Went into effect in 2019. This law required Maryland employers that intend to use facial recognition technology in job interviews to provide adequate notice and obtain written consent from applicants.
  • Illinois’ AIVIA – Went into effect in 2020. Illinois’ Artificial Intelligence Video Interview Act (AIVIA) ensures Illinois employers comply with the law if they use artificial intelligence (AI) to analyze video interviews by job candidates. The AIVIA imposes duties of transparency, consent, and data destruction on organizations using AI to evaluate interviewees for jobs based in Illinois.
The #HR sphere is seeing an increase in regulations on using #ArtificialIntelligence in their processes. Get a full rundown of what these laws mean for the future of #AI in HR tech via @TalentTechLabs: Share on X

For years now, AI in the hiring process has been under scrutiny, and these laws are simply a glimpse into what could likely be implemented across the country. Luckily, these bills are in place to help optimize the use of artificial intelligence by auditing its applications.

AI In HR Tech: Where Do We Go From Here?

With these forecasts in mind, how can your organization properly prepare to meet the requirements of these bills and also optimize the use of artificial intelligence tools? 

For the most part, there is a split reaction among talent professionals. Some claim this is an overstep on the government’s end, while others are mostly relieved to have a function in place to evaluate their tools regularly. 

Regardless of your stance, these laws do make it essential to evaluate your current processes, the role of AI in your tech stack, and how it potentially impacts your hiring process. Here are some ways experts have suggested for HR professionals:

  • Share your intentions/usage of AI tools with candidates
  • Use your current data to evaluate biases
  • Make sure your data is explainable
  • Ensure transparency is a priority in your process
  • Know what information your tools are collecting
  • Always handle an individual’s data responsibly
  • Don’t “wait and see” what regulations will impact your organization, act proactively and start now

Whether your organization falls under the legislation mentioned in this article or not, being aware of the changes occurring in the space and the regulations coming down the pike will enable you to make proactive decisions for the betterment of your company.

Regulations on AI in HR tech are just beginning. However, there’s a lot we can already learn from them and the parameters they are setting. Instead of viewing this as an impediment to your current processes, it’s essential to recognize the value of these regulations as an opportunity to refine your organization’s tools and ensure compliance across the board.

To learn more about how TTL can advise you on which tools and technologies will work best for you now and in the future, reach out to us today.