t tWhile it appears every talent acquisition-related article is somehow about Artificial Intelligence, there’s a good reason for it. According to research by Modern Hire, lead by Aptitude Research’s Madeline Laurano, 45% of companies worldwide are currently using AI to improve recruiting AI. While the concept of intelligence demonstrated by machine has come a long way since the first mentions in the 1940s through the work of cyberneticians Warren Sturgis McCulloch and Walter Pitts — it comes paired with a good amount of scrutiny.
Artificial intelligence regulations
While any potential continued success of artificial intelligence in hiring tools and practices will likely come down to how it is regulated — we’re not too far away from a scenario wherein Europe-based companies may require independent audits and other forms of control through the European Union’s proposed Artificial Intelligence Act. If the act were to be approved, it would have serious implications for companies inside and outside the EU. It may also stimulate similar laws in the U.S. and China.
We’re not too far away from a scenario wherein Europe-based companies may require independent audits and other forms of control through the European Union’s proposed Artificial Intelligence Act.
Since 2019, lawmakers, particularly in the United States, have set up regulations to ensure the technology being used is transparent, fair and non-discriminatory. Illinois became the first US state in 2019 to implement an Artificial Intelligence Video Interview Act. The act requires employers who use AI for video interviews to report, be transparent and allow consent from interviewees. While in New York City, employers will be banned from using artificial intelligence-based tools to screen candidates that haven’t been ‘bias audited’.
It would be a sweeping law that would classify AI systems according to risk and establish rules for trustworthy behaviour, use and monitoring of the systems.
In October 2022, the White House Blueprint for an AI Bill of Rights was introduced to protect individuals. By laying out five “common sense” protections for the design, development and deployment of AI and other automated technologies. Meanwhile, in Europe, the debate still continues about the expected on the proposed act. It would be a sweeping law that would classify AI systems according to risk and establish rules for trustworthy behaviour, use and monitoring of the systems.
HR professionals don’t understand AI
But whatever happens on the regulatory side, Modern Hire’s research showcases a clear knowledge gap among HR professionals when it comes to artificial intelligence. So much so that only 20% of HR professionals surveyed ‘have a clear understanding when they are using AI’. The report cites the need for HR to take the lead when it comes to AI integrations — but are they able to when the majority doesn’t understand when their hiring technology actually uses AI to evaluate candidates?
Only 20% of HR professionals surveyed ‘have a clear understanding when they are using AI’.
In all, 46% of HR professionals say they don’t know when they’re using AI. 26% of HR professionals say they’re not always clear on when they’re using AI. Leaving just 20% that say they have a ‘clear understanding’. 4% said they did not have a clear stance on the subject. Therein lies an important chance for change, the report states. “AI has an important place in the ideal hiring practice, but HR leaders must be prepared to carefully manage it to prevent potentially harmful consequences and should also rely on vendors who know the difference.”
‘AI can help us understand complicated data’
Nevertheless, the report expects a renewed focus on the usage of AI for both internal corporate users and candidates. In other news: it’s here to stay. “This will include making it easier to conduct effective, efficient, ethical, and engaging interviews”, Laurano states. “Enabling users to leverage data and insights from their workflows for decision making and improvements. As well as ensuring ongoing compliance with client requirements and regulatory needs.”
‘Sound AI that stands the test of fairness’, is what’s required.
In the long run, the report expects AI to be a primary driver for improved Quality-of-Hires and higher retention. ‘Sound AI that stands the test of fairness’, is what’s required. “The emergence of “intelligent interview” tools and techniques. What’s the common denominator of these Flight to Quality trends in 2023? The use of embedded hiring science and automation to drive data-informed outcomes, ensure fairness and improve experiences at scale.”
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