In May, a federal judge in California Mobleyv. Workday As a group action. The lawsuit alleges Workday's AI-driven applicant screening tool in multiple employment settings discriminates against job seekers based on their self-identification as members of a protected class. One of the first cases of this type could become a landmark regulating the use of AI in employment decisions. This has sparked important conversations about fairness, accountability and governance in recruitment practices.
From rankings of resumes and candidates to job hunting recommendations, managing pre-employment tests, identifying learning and development opportunities, HR technology's AI has already impacted decisions that directly affect hiring, promotions, or marginalized people. Regardless of the outcome of the lawsuit, the case serves as a call to encourage HR leaders to take action. HR executives need to be proficient in AI applications, risks and governance.
reference: Would you like to buy AI? HR leaders should be able to answer
As an HR Tech nerd, I admit that AI tools are extremely persuasive. I was an early recruit. TA's AI remains revolutionary. Responsibly use can improve employment efficiency, improve candidate experience, and successful employment decisions. but, Mobley The case emphasizes risk. There could be too many good things. Apologise to Ron Popeil, the inventor of Rotisserie Oven. This is not a “set and forget” technology.
Important Questions
Even if Workday is not your HCM provider, Mobley The case highlights the importance and potential risks of understanding where AI is in the existing HR technology stack. Here are five important questions that all HR leaders need to ask:
Where is the AI in my HR ecosystem? Do you know which tools in HR Tech Stack use AI? AI is popular in most TA technology stacks, both for good and bad reasons. Know where it is and how it works.
What kind of data does AI train? Some types of AI are “trained” using a specific dataset. For tools such as resume screening and candidate rankings, it is essential to understand whether training data accurately reflects diversity and skill sets intended to attract, or whether it enhances historical bias.
Are we auditing our systems and who is conducting audits? Regular independent reviews of AI systems are important to identify and mitigate bias. If you're buying the tool, consider looking for ethical AI certificates from companies like Warden-AI.
What adoption KPIs do our tools optimize? Is the algorithm consistent with fair employment goals or is it prioritizing speed and efficiency at the expense of fairness? We won't know until we run an audit.
If the tool fails bias test, what is our plan? Are there any clear protocols to address poorly performed systems, such as escalation paths and corrective actions? Is your plan reflected in your vendor master service agreement?
Rethinking the HR Leadership Table
Answer these questions requires new skills and perspectives for HR leaders. Traditionally, senior HR teams included roles such as HR business partners, total rewards heads, learning and development, HR strategy and sometimes talent acquisition. But AI is changing the game.
Today, HR leaders need someone at the table with the following skills:
- data. Find experts who understand how organizations use HR data in their functions and areas.
- technology. Rather than relying solely on vendors and implementation partners, you need a technologically savvy leader who can direct your HR technology strategy.
- finance. Find leaders who can build business cases for AI investments that provide measurable value.
- AI ethics. Champions are needed to ensure responsible and fair use of technology in the HR process.
The skills required for our work and leads are evolving rapidly. HR teams need to adapt to meet these new requirements.
The strategic role of CHROS in AI governance
As AI becomes more refined, Chros will need to take the lead in assessing, managing and optimizing the tools that organizations use. This task includes:
- Establish responsible AI principles and create practical governance frameworks.
- We expect transparency from our vendors about how the algorithms are developed and trained.
- Requires certified ethical AI tools from HR technology providers.
- Build AI literacy within your HR team to enable informed decision-making.
- Create an escalation path to address tools that perform or incorrectly perform your organization's goals.
Mobleyv. Workday The case is a crucial moment. Whether Workday is liable or not, the message to employers is clear. If you are using AI in HR, you need to understand exactly how it works and how it affects your decision.
Please note: Do not overdo it automatically
CEOs and boards are putting more pressure on Chros to cut costs than ever before, and AI is often an attractive solution. However, replacing HR experts with unproven techniques can have unintended consequences. Some organizations fired the entire recruitment team only if the AI tools failed to provide reliable results or introduced unacceptable risks.
AI can automate certain tasks, but that doesn't mean that it's always the right choice. HR leaders need to ensure and balance that they maintain the “human” aspect of their talent while using AI responsibly.
Final Thoughts on AI in Employment
Mobley The case is one of many signals that HR is entering a transformational era, and I feel it is even more important than the massive changes that are caused by the pandemic. Today's CHROs must not only acquire traditional HR skills, but also become champions in AI governance and data ethics. The stakes have been higher than ever, and it's time to act.
AI is changing HR, but it's up to the HR leader to ensure that the changes are better. Leading responsibly. The world is watching.
