Artificial Intelligence (AI) is transforming human resources departments. While the benefits of AI include increased efficiency and cost benefits, the dangers are bias and discrimination. As a result, regulators are rapidly enacting laws to govern the use of AI in employment decisions, presenting a challenge for employers to keep up with legislation and remain compliant.

There is currently no federal law governing the use of AI in employment matters, however government agencies are making AI a target of their enforcement activities. Most recently, the EEOC released a document related to AI’s potentially adverse impact on protected groups and the risk of Title VII violations and offered guidance on how to limit adverse impact.

AI and automated employers’ decision tools (AEDT) can be useful for employers in the hiring process. For example, AEDT can be useful in sifting through employment applications. However, AI is not perfect and can make mistakes, which can impact hiring decisions and there can be a lack of human interaction. People can build relationships and trust with candidates. Algorithms trained on past decisions may mimic undesirable human biases, for example, past discriminatory hiring and firing practices. Using AI can lead to stress if workers do not have access to data or algorithms that are the basis of decision making.

This area of the law is developing quickly. Employers will want to watch for expected new developments in state and federal laws.

Questions? Contact attorney Joseph H. Laverty in our Davenport office at (563) 333-9102 or by email