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How to Ethically Use AI in Hiring and Maintain Transparency

AI Aug 14, 2024

We won’t be wrong in saying that artificial intelligence has crept into several aspects of our lives. It has reshaped how we do business, communicate, and make decisions.

In the recruitment realm, AI has the potential to enhance efficiency, objectivity, and insight. A Tidio study revealed that about 67% of HR professionals believe that AI can positively impact the recruitment process.

But let's face it — this powerful technology also results in some ethical dilemmas.

How do we ensure fairness in recruitment? Also, how do we maintain transparency with our candidates and stakeholders?

This article explores how to ethically use AI in hiring to foster integrity in your recruitment process.

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What Are the Challenges in AI Recruitment?

Yes, there’s been a rise of AI use in interviews. And rightly so since this strategy comes with several benefits, such as data-driven insights, predictive analysis, speed, and efficiency.

This doesn’t mean AI recruitment is an innovation without flaws. Several challenges have made some recruitment specialists question the integrity of AI outcomes.

Below are the challenges in AI recruitment.

1. Biased Algorithm

AI systems have limitations in their understanding and knowledge. This limitation can impact hiring decision-making, as they rely strictly on the data they’re fed.

In recruitment, limited knowledge of candidates' qualities and experiences can result in biased decision-making. It can widen the divide between the represented and the underrepresented when there’s no proper human supervision.

2. No Form of Transparency

This is a common roadblock when learning how to ethically use AI in hiring. Decision-making in AI recruitment is an opaque concept. Recruiters may find it hard to understand how these AI systems reach their decisions.

Complex AI algorithms don’t usually provide a detailed analysis of how they arrived at a decision. They are "black boxes" that involve mathematical computation and interaction with numerous parameters, making it hard for humans to follow.

This lack of transparency weakens trust in the recruitment process.

3. Concerns About Data Privacy

AI models require a large volume of data to complete a recruitment process. They collect, sort, and analyze candidates' personal data to determine who moves to the next recruitment stage.

This access to personal information has raised concerns about data security and privacy. Candidates are now skeptical about who has access to their confidential information. The potential for unauthorized access or data breaches raises questions about how securely their data is being stored and protected.

4. Over-Reliance on Technology

AI algorithms are not infallible. There’s a chance that the system will miss or overlook important details in a candidate's profile. Moreover, relying heavily on technology reduces the intuition required in recruitment.

How to Ethically Use AI in Hiring

AI tools can help you hire faster and fairer. But you may be wondering, “how can I leverage AI in hiring without compromising fairness, transparency, and candidate trust?”

When hiring with AI, recruiters must adhere to certain ethical AI principles to ensure a fair and successful recruitment process. In this section, I’ll discuss five ways on how to ethically use AI in hiring.

Let’s get started.

1. Invest in Fair and Unbiased Data

Fairness is an important factor in the ethical use of AI in business.

Ensure that the preprocessed data you feed the AI model is unbiased. Training your AI model with fair, inclusive, and diverse data creates a level playing field for candidates.

Biased data can be detrimental to your recruitment process. It may influence the AI system to favor certain candidates — even those who may not be the best fit for your company.

Clear any inherent bias in the data before feeding it to the AI model to avoid discrimination.

2. Prioritize Transparency in Decision-Making

Prioritizing transparency allows you to explain to interested candidates why you're not moving forward with their application.

To catch any form of bias or oversight, conduct a human review process after the AI has made a decision. Use tools like Explainable AI to gain insights into the AI algorithm's rationale behind candidate rankings.

In essence, transparency involves making AI systems, such as an AI workplace assistant, understandable by humans.

3. Adhere to Laws and Regulations

The current shift to the data transformation and automation era comes with a complex landscape of regulations. For example, Europe's General Data Protection Regulation (GDPR) imposes strict rules on data collection and processing.

Here’s a picture showing important points of the GDPR.

Image via GTB Technologies

Ensure you don't breach any law or regulatory requirement when collecting, handling, using, and storing candidates' data.

There are also laws governing employment opportunities. For example, the Equal Employment Opportunity (EEO) law prohibits unfair treatment and discrimination when hiring for a job.

It's important to research the relevant legal and regulatory provisions and adhere to them accordingly. Remember, ignorance of the law is no excuse.

Aside from avoiding fines and legal repercussions, data compliance can help you build trust among employees and potential candidates.

4. Introduce Human Judgment

AI systems shouldn’t replace human judgment; rather, they should work hand-in-hand. Ethical AI-powered resume builders can help job seekers create professional resumes automatically with the help of basic candidature information.

For effective and ethical AI-powered recruitment, find the right balance between AI operations and human management.

You can’t completely take away HR professionals and expect AI algorithms to handle the recruitment process flawlessly. Human intervention is required for fairness and transparency.

However, AI is a great way to improve employee productivity. The Attrock guide outlines everything you should know about improving employee productivity.

Introduce human professionals at different stages of AI recruitment to scrutinize and approve the algorithm's decisions. However, provide workplace learning to educate employees to complement the algorithm and report potential issues.

5. Monitor and Evaluate the Algorithm Regularly

Finally, AI systems require regular assessments to maintain optimum performance. Evaluating the AI algorithm regularly can help you identify and rectify any bias and potential issues.

Auditing the AI algorithm can also help complete the necessary updates to ensure compliance to laws and regulations and maintain ethical standards.

Final Thoughts

It's clear that while AI can revolutionize the hiring process, it also brings challenges. Ensuring fairness and transparency and mitigating biases are critical for the ethical use of AI in recruitment.

Remember that AI should complement human judgment and not replace it.

Now, you know how to ethically use AI in hiring. What’s stopping you from creating accessible opportunities and making smarter and more transparent hiring decisions?

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Zoi Kotsou

Copywriter - Content writer - Content Strategist

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