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AI use in HR hiring processes high-risk – MHC

Bosses should be wary of ‘bright ideas’ by staff members to run with AI technology, without a full awareness of the risk landscape, an MHC employment-law webinar has heard.

Automating and enhancing HR work processes, such as screening CVs, also came with high risks, although it could also save many thousands of hours of work, the webinar heard.

Balancing innovation with ethical considerations and compliance will be crucial as the landscape of work changes.

The technology could allow employees more time to focus on interesting or challenging work, the event was told.

However, AI can perpetuate existing discrimination if not closely managed, and must be used carefully in setting employee tasks and goals, since technology may not always account for individual contexts.

System opacity

The opacity of AI decision-making makes it imperative to understand how such systems reach their conclusions.

Human oversight of the technology is key, with particular care needed for AI tools’ monitoring and surveillance capacity of both location and productivity.

Monitoring tools can easily violate data-protection regulations, as seen in the French case against Amazon, which saw the distribution giant hit with a massive €32 million fine for its “excessively intrusive” employee-monitoring system.

Privacy rights must be at the forefront of manager decisions, the webinar heard, in light of potential legal challenges after the introduction of the EU AI Act.

The act prohibits social scoring by governments, as well as unconsented surveillance – including the scraping of facial images.

Emotional-inference systems may fall into this category, especially if they operate in a manipulative manner.

The act specifies that high-risk AI systems, such as those used in HR for recruitment and selection, as well as performance management and training and development, must undergo rigorous assessments to ensure compliance with safety and ethical standards.

Fostering trust is key to successfully integrating AI in the workplace, with full employee confidence in the fairness and transparency of AI-driven decisions affecting their careers.

This involves clear communication from employers about how AI tools work and the rationale behind automated decisions.

Unfairness

The lack of a human hand in workplace processes could lead to feelings of unfairness and mistrust, the webinar heard.

Organisations must prioritise transparency, fairness, and compliance with legal frameworks if they wanted to effectively leverage AI in the workplace, the event was told.

As the EU AI Act takes shape, HR departments must be proactive in understanding its implications.

Speakers examined the responsibilities of deployers versus providers  of AI.

Organisations need to be aware that, even if they are primarily users of AI platforms, any significant modifications they make could elevate their risk profile and compliance obligations.

Understanding the differences between user and provider obligations was vital, the event heard.

Due diligence

Employers should conduct thorough due diligence when selecting AI vendors and ensure that contractual agreements include compliance assurances.

There must be a robust understanding of AI systems and their implications, and significant investment in training and resources to ensure responsible usage.

Workplace transformation due to AI integration will likely create new roles while automating some repetitive tasks.

Brian McElligott (partner in AI at MHC) said that the employment uses of AI would be treated like medical or pharmaceutical devices before they went on the market, with a conformity assessment procedure.

“Once it's on the market there will be ongoing monitoring obligations, so it will be a highly regulated, prescriptive, and interventionist space in Europe,” he stated.