Navigating AI Risks in Hiring: A Stakeholder Approach

Companies are managing different risks and worries when it comes to AI in hiring.  According to a recent article in Fast Company magazine, when considering an AI system in hiring, the different stakeholders in a company have different concerns and risk tolerances.

Human Resources

HR leaders need confidence that AI will support, not replace, human judgment and that it will not create discriminatory outcomes.  HR is also concerned about losing the “human element” that makes recruiting effective.

IT

Security and explainability are IT’s core concerns.  IT leaders need proof that candidate data is protected and that the AI system’s outputs can be explained.  For example, when it can be explained to a recruiter can see why a candidate ranked where they did, the AI system is easier to defend.

Legal

Legal’s approval remains one of the biggest hurdles to adopting AI because Legal is often brought in too late and positioned as “gatekeepers” rather than strategic partners.  Instead, bring Legal in earlier so that they can help establish a “defensible, well documented process” confirming human accountability.

Finance

CFOs are concerned about the risk to the company’s reputation, regulatory fines, litigation exposure, and the cost of inaction.  CFOs need to know that those risks are being actively managed and that the organization can prove human oversight if challenged. 

Getting Everyone to Yes

The adoption of an AI-based hiring system is a cross-functional decision involving multiple stakeholders with different priorities and definitions of acceptable risk.  According to Fast Company, to effectively incorporate AI into a company’s hiring system, the company needs to involve HR, legal, IT, and finance early in the process and address their concerns.

To read the full Fast Company article click here.