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Employment Trends: How AI is Changing the Way We Hire

According to some surveys, almost 80% of U.S. employers use artificial intelligence to some degree for recruitment and hiring.  The most common uses of AI include screening resumes and applications, identifying candidates, and scheduling interviews.  With the expanding availability of these tools, the use of AI in recruitment is growing rapidly.

On the one hand, the use of AI in recruitment can help employers:

  • Save time and money in screening applicants.
  • Potentially improve the quality of hires.
  • Help to identify candidates who are more likely to be successful in the role.
  • Make hiring decisions more objective by removing bias in hiring decisions.

On the other hand, the use of AI has risks:

  • AI algorithms are trained on data. Therefore, if that data is biased, the resulting algorithm will be biased, which can lead to discrimination.
  • AI algorithms are not always accurate which can have a negative impact on hiring decisions including screening out good candidates.
  • It can be challenging to understand how AI algorithms make decisions making it difficult for companies to assess it for potential biases.
  • AI algorithms can collect a large amount of data about applicants. However, employers should be mindful of what data is collected and how it is used.

Some of the risks associated with AI can be mitigated by:

  • Using AI algorithms that are designed to be fair and unbiased.
  • Testing the algorithms for accuracy.
  • Protecting job applicant data.
  • Understanding laws that address the use of AI in recruitment.

A patchwork of laws currently regulates the use of AI in recruitment.  For example,

  • California has a number of laws that regulate the use of AI in hiring, including the California Privacy Rights Act (CPRA), which gives consumers the right to know what personal information is being collected about them and how it is being used.
  • Illinois has a law that prohibits employers from using facial recognition technology to make hiring decisions without the applicant’s consent. It also has a law that restricts employers from sharing any applicant videos and requires the employer to destroy them at the request of the applicant.
  • Maryland has a law that prohibits employers from using a facial recognition service to create a facial template during a pre-employment interview without an explicit written waiver.
  • New York City law requires employers to conduct an annual bias audit of any AI-based employment decision tools (AEDTs) used. A third party must conduct the bias audit, and the results must be made publicly available.

These are just a few of the jurisdictions that have enacted laws regulating the use of AI in hiring. As the use of AI continues to grow, more states will likely enact laws regulating its use.

Where your company’s recruitment efforts have the potential to draw candidates from multiple jurisdictions, the laws of every city and state should be reviewed to ensure compliance.

AI is having a significant impact on the way employers hire. While there are some risks associated with AI, it also has the potential to make hiring more efficient, accurate, and fair. However, as AI continues to evolve, it will be necessary for employers to use it responsibly and mitigate the risks of bias and discrimination.

Disclaimer: This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Galloway and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions.


Doris Bobadilla

Wendell Hall