TL;DR:
- AI is a powerful technology in the business world, but it also has limitations, particularly in human resources.
- AI can introduce unintended biases into the hiring process, but it can also reduce bias by removing the human element.
- AI is only as unbiased as the data it is trained on, and if the data is biased, the AI will perpetuate that bias.
- Incorporating AI into HR presents a challenge when accommodating applicants with disabilities.
- Employers must actively work to eliminate biases, including those related to disabilities.
- Employers should involve multiple departments in the AI purchasing process and conduct regular audits to ensure non-bias results.
- Employers must ask the right questions of their AI vendor to understand the data and how it is developing.
- Open and informed discussions around AI in HR are crucial for informed decisions, maximizing AI’s potential, and minimizing the risk of discrimination and other legal issues.
Main AI News:
Artificial intelligence has been making waves in the business world, proven by the widespread adoption of ChatGPT. This cutting-edge technology offers a multitude of benefits, from streamlining data analysis and processing to enhancing decision-making processes. By automating routine tasks, AI enables employees to focus their efforts on more strategic endeavors.
However, as with any new technology, AI also has its limitations. In the realm of human resources, utilizing AI for resume screening and candidate selection can lead to unintended biases and discrimination. This, in turn, can result in costly lawsuits.
Laura Lapidus, Director of Management Liability Risk Control at CNA Insurance, cautions employers to consider both sides of the coin when it comes to AI. “It’s important to recognize that while AI is a fascinating and powerful tool, it can also perpetuate biases and discrimination, whether intentional or not,” Lapidus warns.
Employers looking to leverage the potential of AI in their HR processes should familiarize themselves with best practices to minimize the risk of discrimination and other potential legal issues. By doing so, they can ensure that AI is used to its full advantage, maximizing efficiency and minimizing potential pitfalls.
Balancing the Pros and Cons of AI in HR
While AI does have the potential to introduce biases into the hiring process, this doesn’t diminish its numerous benefits. With its ability to quickly and efficiently sift through resumes, AI can save companies time and energy.
Laura Lapidus, Director of Management Liability Risk Control at CNA Insurance, acknowledges the potential of AI to reduce bias by removing the human element from the hiring process. If programmed and trained correctly, AI can eliminate discriminatory practices and identify the best candidate for the job.
However, the potential for bias still exists. AI is only as unbiased as the data it is trained on, and if the data is biased, the AI will likely perpetuate that bias. For example, if a company utilizes AI in its hiring process and trains it to find candidates who match the demographics of the company’s most successful employees, the AI may begin screening for those demographics and overlook other qualified candidates.
Lapidus also warns that AI may mask or perpetuate biases that already exist. For instance, if the top executives in a company are white men and the AI is trained to find candidates who match that demographic, the AI may overlook candidates from other backgrounds. This can even extend to the colleges the candidates attended, where AI might overlook historically Black colleges if they don’t match the “most successful” demographic.
The Challenge of Accommodating Applicants with Disabilities in AI-Powered HR
Incorporating AI into HR processes presents a unique challenge when it comes to accommodating applicants with disabilities. As Laura Lapidus, Director of Management Liability Risk Control at CNA Insurance, explains, “Everyone’s disability is different, making it difficult to check AI tools for bias.”
For example, if a computerized knowledge test is part of the hiring process, applicants with visual impairments or physical disabilities that inhibit their ability to type could be disqualified by the AI based on their test completion time.
The Americans with Disabilities Act requires employers to provide reasonable accommodations for qualified applicants with disabilities. However, employers often face difficulties when computerized knowledge tests are provided by third-party vendors. In such cases, employers must ensure that the tests have been bias-tested with respect to disabilities rather than relying solely on the vendor’s assurance of bias testing.
Lapidus advises employers to ask more questions and be proactive in accommodating applicants with disabilities to avoid potential legal issues and ensure they are hiring the best candidate for the job. By taking these steps, employers can leverage the power of AI while meeting their legal obligations and promoting diversity and inclusion in the workplace.
Fostering Open and Informed Discussions Around AI in HR
Despite the potential for bias, AI offers many benefits for HR processes. To realize these benefits while minimizing the risk of discrimination, employers must actively work to eliminate biases, including those related to disabilities.
Laura Lapidus, Director of Management Liability Risk Control at CNA Insurance, highlights the importance of ongoing conversations between employers and their AI partners and stakeholders. She suggests involving individuals from various departments, such as HR, legal, and IT, in the AI purchasing process and conducting regular audits to ensure that the results generated by the AI are not biased.
Employers must also ask the right questions of their AI vendor to understand what data the AI is using and how it is developing over time. It is crucial to ensure that the vendor is working with a disability expert and consulting with them to minimize potential biases.
By fostering open and informed discussions around AI in HR, employers can make informed decisions, ensure that the AI is being used to its full potential, and minimize the risk of discrimination and other potential legal issues.
Conlcusion:
The rise of AI in the business world presents both opportunities and challenges for organizations in the HR industry. AI has the potential to streamline HR processes and improve decision-making, but it also has the potential to perpetuate biases and discrimination. As such, it is crucial for organizations to adopt best practices to minimize these risks while maximizing the benefits of AI.
This includes regularly auditing AI results, involving multiple departments in the AI purchasing process, and consulting with experts to eliminate potential biases. The adoption of AI in HR will continue to grow, and organizations that embrace its benefits while minimizing its limitations will be well-positioned to succeed in the market.
