The Rise of AI in the Workplace: Benefits and Pitfalls for Employers
Impact of AI on employment relationships
There is no single, recognized definition for the term 'artificial intelligence.' It is defined as 'an umbrella term for a range of algorithm-based technologies that solve complex tasks by carrying out functions that previously required human thinking.'
For employers, the adoption of AI-based tools can increase the speed and scale of previously manual processes.
Recruitment is a key area in which AI tools can increase the speed and scale of previously manual processes.
AI tools can also be used to review and filter job applications on a larger scale than would be feasible for most in-house talent acquisition teams.
Despite the obvious efficiencies, there are some key risks and associated safeguards that employers should consider before implementing AI technology in their employment cycle.
Discrimination
An algorithm that demonstrates a preference for particular traits that, in practice, results in men being favored over women in recruitment selection is an example of indirect discrimination on the basis that the algorithm places women at a substantial disadvantage because of their sex.
The use of AI may also create other legal risks for employers. Disabled people may face particular disadvantages in undertaking automated processes or interviews. Given the obligation under many anti-discrimination laws to make reasonable adjustments to remove disadvantages for disabled people, an employer could potentially find itself in breach of discrimination laws when using AI software as a blanket approach.
Language and tone of voice can also be more difficult for someone whose first language is not the native language assessed by the AI tool, increasing the risk of negative racial or nationality bias and unlawful discrimination claims based on race.
Data protection
It is likely that the use of AI during the employment life cycle will involve the processing of candidate and employee personal data. Employers should therefore be mindful of their obligations under data privacy regulation, with particular regard paid to three key principles: lawfulness, fairness, and transparency.
The use of AI technology to make employment decisions without human scrutiny will be considered a solely automated decision.
In the latter two cases, specific safeguards should be in place, such as a mechanism for the individual to challenge the decision and obtain human intervention with respect to the decision.
Essentially, this is a human appeal process.
Future trends
Next steps for employers
It is essential to ensure that suitably qualified, skilled, and experienced individuals are responsible for the development and use of AI to minimize the risks of bias and discrimination.
Prior to implementing AI technology, employers should consider whether a data protection impact assessment is required. Employers will also need to consider and identify the lawful basis for processing personal data before proceeding with any automated profiling or decision-making.
Employers should proactively update candidate and employee privacy notices to highlight the use of AI technology in the processing of personal data.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007