Are AI hiring tools adding risks to your business?

Despite the significance of AI to large enterprises, only 36% currently have a Chief Artificial Intelligence Officer in place. (Photo: Shutterstock)

Artificial Intelligence (AI) has permeated much of our lives including how companies are using them for recruiting and hiring purposes, as well as for performance and promotion. However, despite HR using these tools, they are often not the key decision-makers for the management of them. That’s according to the Baker McKenzie survey, Risky Business: Identifying Blind Spots in Corporate Oversight of Artificial Intelligence.

“There is an extraordinary amount of potential downside risk in using AI algorithms for people management functions, and a clear disconnect in developing and managing HR-specific, AI-enabled applications,” said Bradford Newman, Palo Alto-based litigation partner at Baker McKenzie. “Given the increase in state legislation and regulatory enforcement, companies need to step up their game when it comes to AI oversight and governance to ensure their AI is ethical and protect themselves from liability by managing their exposure to risk accordingly.”