Artificial Intelligence in Hiring: EEOC Compliance

Recently, several government agencies have been scrutinizing the use of Artificial Intelligence (AI) in the hiring process.  As technology and AI continues to expand in the world, it’s unsurprising that hiring is also expanding in this area. 

The US Equal Employment Opportunity Commission (EEOC) has a responsibility to ensure that while technology may be evolving, antidiscrimination laws are still applicable. To this end, the EEOC launched an initiative in 2021 to ensure that AI and algorithmic decision-making tools do not create discriminatory hurdles to jobs.  They are looking closely at how technology affects how employment decisions are made.

The law requires that companies using automated hiring tools provide applicants the option of having their skills or personalities evaluated by a human, rather than technology. Additionally, companies should be prepared to disclose information on how their algorithmic hiring tools work, and how applicants’ data will be used and stored.

Those using AI or other algorithmic decision-making tools must ensure that both a disparate impact study and a reliability study are completed annually. They must also determine whether the tools create any possibility of bias in regard to relevant protected classes during an employment or hiring process.  Employers should carefully evaluate their AI tools for potential risk; some have only used reliability studies that do not ensure non-discrimination.