Artificial intelligence (AI) has become an essential tool in human resources (HR) for many companies, allowing them to streamline processes and improve efficiency. However, as with any technology, the use of AI in HR raises ethical concerns, particularly around fairness and bias. In this blog, we will explore the ethics of AI in HR and how companies can balance efficiency and fairness.

The benefits of AI in HR are clear. According to a report by Accenture, AI can help reduce HR costs by up to 30% while also improving HR performance and employee experience. AI can automate repetitive tasks, such as resume screening and scheduling interviews, allowing HR professionals to focus on more strategic work.

However, the use of AI in HR also has its drawbacks. One of the main concerns is the potential for bias. AI algorithms are only as unbiased as the data they are trained on, and if that data is biased, then the AI will be too. This can result in discrimination against certain groups that may be underrepresented in the training data.

A study by the National Bureau of Economic Research found that an AI system used by a large US retailer to screen job applicants showed bias against women. The system downgraded resumes that included words such as “women” or “female,” as well as those that mentioned participation in women’s sports. This is a clear example of how AI can perpetuate bias, even unintentionally.

To ensure fairness, companies must carefully evaluate the data used to train AI systems and regularly test for bias. They should also involve a diverse group of stakeholders, including HR professionals and representatives from underrepresented groups, in the development and testing of AI systems.

Another concern with the use of AI in HR is privacy. AI systems often require access to sensitive personal information, such as employment history and performance evaluations, to make hiring and promotion decisions. Companies must ensure that this information is stored securely and used only for its intended purpose.

Additionally, employees have the right to know how their data is being used and have the ability to opt out of AI-based decision-making. This requires transparent communication from companies about their use of AI in HR and the impact it may have on employees.

Despite these concerns, the use of AI in HR is likely to continue to grow. In fact, a survey by PwC found that 55% of HR professionals believe that AI will be widely adopted in their field within the next three years.

So, how can companies balance the efficiency benefits of AI with the need for fairness and ethical considerations?

Firstly, companies must prioritize diversity and inclusion in their recruitment and promotion processes. By ensuring a diverse pool of candidates and evaluators, companies can reduce the risk of bias in AI systems.

Secondly, companies must invest in training and development for HR professionals to ensure they are equipped to use AI in an ethical and fair manner. This includes training on bias detection and mitigation, as well as the responsible use of employee data.

Finally, companies must be transparent about their use of AI in HR and engage in ongoing dialogue with workers and stakeholders about the ethical implications. This can help build trust and ensure that AI is used in a way that is aligned with company values and ethics.

In conclusion, the use of AI in HR offers significant efficiency benefits for companies, but it also raises ethical concerns around fairness, bias, and privacy. Companies must prioritize diversity and inclusion, invest in training for HR professionals, and be transparent about their use of AI in order to balance efficiency and fairness. By doing so, they can reap the benefits of AI while ensuring that it is used in an ethical and responsible manner. If you would like recommendations on this topic or any other HR-related matters, request a call with a representative from an industry-leading professional employer organization (PEO) such as VensureHR.