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Exploring the Pros and Cons of Using AI in Recruitment and Selection

published March 20, 2023

By Author - LawCrossing
Published By
( 3 votes, average: 3.6 out of 5)
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Exploring the Pros and Cons of Using AI in Recruitment and Selection

The utilization of artificial intelligence (AI) possesses the capability to completely transform the recruitment and selection process for job vacancies and promotions within companies. Nevertheless, as with any innovative technology, there are apprehensions concerning its potential usage and unintended repercussions.
 

AI has numerous benefits for the recruitment and selection process, including:
 
  1. Resume screening: AI-enabled tools can scan resumes and identify candidates who meet the qualifications and skills required for a particular job. Natural language processing algorithms analyze resumes and cover letters to identify relevant skills and experience, making it easier for recruiters to pinpoint suitable candidates and reduce the time consumed in manual resume screening. This also helps to decrease the likelihood of unconscious bias, as AI algorithms evaluate resumes based on predetermined criteria rather than human prejudices.
  2. Candidate queries: Chatbots and other virtual assistants can be employed to schedule interviews and answer candidate questions. This simplifies the hiring process, making it more convenient for candidates and reducing the workload of recruiters.
  3. Interviewing: AI-powered interviewing tools can perform initial interviews with candidates, utilizing natural language processing to comprehend their responses and identify necessary qualifications and skills. AI facial recognition and voice analysis can be used to evaluate a candidate's non-verbal communication and tone of voice. This can provide valuable insights into a candidate's personality and communication style, which can be especially useful for roles that require strong communication skills.
  4. Predictive analysis: AI tools can analyze data from previous hires and identify patterns indicative of success in a given role, aiding in identifying the most suitable candidates for a job. AI can also assess a candidate's current skillset and future potential, offering opportunities to upskill and reskill candidates who may have previously been overlooked.
  5. Fairness and bias mitigation: AI tools can assist in minimizing bias in the recruitment process by eradicating subjective factors and concentrating on objective criteria when evaluating candidates.
 
Although the use of AI in hiring can enhance efficiency and objectivity, it is crucial to take measures to mitigate the risk of perpetuating existing inequities or causing discrimination against specific groups. Laws and regulations have been proposed and enacted recently to ensure that the use of AI is transparent and that job candidates are treated equitably and have the right to appeal decisions made by AI systems.
 
The EEOC has announced that addressing discrimination caused by AI tools is a top priority in its proposed 2023 Strategic Enforcement Plan. The focus will be on instances where technology discriminates against individuals based on their protected characteristics, such as race, ethnicity, age, sex, or disability. The EEOC has identified automated recruitment, selection, production, and performance management tools as potential areas of concern. Discrimination may be intentional or unintentional, and employers are cautioned to take precautions to avoid disability discrimination. The EEOC cited a previous case involving an online tutoring company that allegedly used its software to reject older male and female applicants based on age and sex.
 
New York City's Local Law 144 of 2021 is the first law in the US that regulates the use of "automated employment decision tools" in candidate screening for hiring or promotion within the city. The law will be enforced from April 15, 2023, and while currently proposed interpretive rules add some clarity, more changes may occur before the effective date. This law is expected to serve as a roadmap for similar laws across the US, and its key components include the following:
 
Broad definition of covered AI: "Automated employment decision tool" is any computational process derived from machine learning, statistical modeling, data analysis, or artificial intelligence that provides simplified output, including a score, classification, or recommendation, which significantly assists or replaces discretionary decision-making. Although the current proposed rules seek to refine this definition further, public comments have focused heavily on the breadth of this definition, and additional changes may occur.
 
Bias audit: An independent auditor must conduct an impartial evaluation of any automated decision tool to assess if its use has resulted in a disparate impact on race, ethnicity, or sex, with a summary of the results made available on the employer's website. The audit must have occurred a year before the tool's use. The current proposed rules detail the specifics of the audit, including more sophisticated statistical testing to address intersectionality.
 
Notices: All New York City job candidates (internal or external) who will be screened for hire or promotion using an automated decision tool must receive a notification at least ten days before its use. The notice must inform the candidate of the qualifications and characteristics the device will use in its assessment, describe the applicable data retention policy, and offer the candidate an "alternative selection process or accommodation." Notices must also be posted on the employer's website.
 
Penalties: Violations of the law are subject to civil liability of up to $500 for a first violation, with each additional violation subject to a fine of $500-$1,500. Failure to meet notice requirements constitutes a separate violation. Failure to meet the "bias audit" requirements results in daily abuses. The law allows individual candidates to bring suit to enforce it and potential government enforcement via New York City's corporation counsel or the New York City Division of Human Rights.

published March 20, 2023

By Author - LawCrossing
( 3 votes, average: 3.6 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.