Global firms are adopting Generative AI (GenAI) tools at an incredible pace. According to the Financial Times, 92% of Fortune 500 companies are making GenAI part of their workflows. Human resources departments are also buying into the power of artificial intelligence. Gartner found that 38% of HR leaders have either considered or used AI-powered solutions to improve process efficiency, while 78% believe their organizations might fall behind if they do not implement AI tools within the next 12-18 months.
AI-powered technologies can improve the efficiency and effectiveness of many HR functions, such as recruitment, talent acquisition, onboarding, professional development, and performance management. However, there are challenges to using AI in HR, including data security and privacy, internal governance, and digital competence. There is a need to balance HR technology to drive efficiency and innovation while ensuring the ethical implementation of AI-driven HR solutions.
Let’s explore how to integrate ethical artificial intelligence into HR practices to ensure fairness and transparency while maintaining a human touch.
What Is Ethical AI?
Ethical AI involves designing, developing, and using artificial intelligence systems according to moral principles and values to ensure they respect human rights, promote fairness, and benefit society. Ethical considerations help to determine the legitimate and illegitimate uses of AI. However, ethical AI policies exceed the minimum threshold of what is legal to respect basic human values.
Principles of AI Ethics in HR
The principles of ethical AI in HR include protecting employees’ fundamental values, including individual rights, privacy, non-bias, and non-manipulation. Global firms should set AI policies that exceed the legal requirements to respect human values. They should also ensure their AI-powered technology helps and supports people with their tasks rather than replacing them. The goal is to combine AI and the human touch in HR.
Other principles of AI ethics in HR include:
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Take a proactive approach to the ethical use of AI by implementing and enforcing specific policies on the use of AI-powered technology
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Ensure AI transparency in HR by explaining decision-making processes and AI-derived outputs
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Instill AI fairness in HR processes to avoid bias and ensure fair treatment of individuals
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Respect privacy rights and follow proper procedures for handling and protecting personal data
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Hold AI systems and their creators accountable for HR-related actions and decisions
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Maintain human control and authority over decision-making in key areas
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Engage HR professionals in developing AI algorithms and train them in the use of AI-powered technology
Ethical Challenges of AI in HR
Human resources can benefit from implementing AI in numerous ways. However, there are potential risks with using AI to support different HR functions. Ethical AI can help to mitigate these risks, such as:
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Lack of transparency: Many employees don’t know or understand how AI-supported HR decisions are made, or how their data is being used to support their training and development.
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Algorithmic bias in hiring decisions: AI algorithms are trained using human-created data sets, which can be inherently biased.
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Invasion of employees’ privacy: Many AI-powered tools collect and retain employees’ information for analysis, which can put their data privacy and security at risk.
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Discrimination in compensation decisions: AI-powered performance evaluation tools may use historical data to support pay disparities and discriminatory compensation practices.
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Automated terminations: HR leaders have allowed AI tools to make hiring and firing decisions without human intervention.
Balancing Technology and Humanity in HR
Ensure Fairness
Perform a bias and fairness assessment to determine the ethical implications of AI in HR. Conduct a thorough review of AI systems to identify and correct potential biases and unfairness. Engage stakeholders across the organization in developing ethical AI guidelines, overseeing the use of AI technology, and addressing potential ethical concerns. To ensure AI fairness in HR, a bias and fairness assessment should evaluate and address issues with:
Protect Data Privacy
Using AI in HR involves collecting, storing, and analyzing employees’ personal data. Protecting the privacy and security of this data can become a significant challenge. It is essential to protect employees’ data against data breaches, as well as the misuse or unauthorized use of that data. To adhere to AI ethics in HR:
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Comply with data protection regulations
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Implement robust data security and privacy measures
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Inform candidates and employees about how and why their data is handled, stored, used, and accessed
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Anonymize personal data before using it within AI applications
Provide Transparency
AI algorithms are often treated as closely guarded secrets, so it can be difficult to understand how hiring decisions are made. A lack of transparency can create mistrust among candidates and employees on decisions that could affect their careers. Transparency is integral to ensuring the ethical use of AI in HR. AI transparency in HR involves:
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Developing explainable AI systems and models
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Explaining the factors involved in hiring decisions
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Communicating how data is collected, stored, and analyzed
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Conducting audits of AI-powered results to identify and correct biases
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Collecting and providing feedback on AI-driven decisions
Invest in Training and Development
Training and development are essential for maximizing the effectiveness of any new technology. The same goes for making the most effective use of AI technology and enforcing the principles of ethical AI in HR. Provide HR leaders and employees with training on AI ethics and best practices to foster a culture of ethical AI use. Training and development should be ongoing, as ethical AI will change as the technology and regulations evolve. However, training should include:
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Reviewing and updating existing training materials and policies to ensure they include AI-related updates
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Understanding the ethical use of AI across different HR-related functions
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Identifying potential data privacy and security challenges
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Discussing the consequences of non-compliance with ethical AI policies and regulations
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Recognizing and reporting non-compliant AI practices
Maintain Human Involvement and Control
Ensuring human control is central to the fundamentals of ethical AI in HR. AI will help to improve the efficiency of HR processes and decision-making. However, human oversight is still essential to balance technology and humanity in HR. Maintain human control over AI systems in HR by:
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Retaining the power to interpret and change AI-powered decisions
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Identifying, correcting, and preventing potential bias and discrimination in hiring patterns
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Reviewing processes to ensure fairness in HR processes
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Updating data and algorithms to support diversity and inclusion
Develop a Human-Centered AI System
The first word in HR is “human”. People should be central in all HR functions. AI should enhance, not replace, human decision-making. A human-centric AI system provides a foundation for collaboration between human involvement and AI technology. It expands human capabilities, supports ethical decision-making, and maintains the principles of fairness and respect.
One way to build a human-centered AI system is to provide HR leaders with AI-powered tools that support their decision-making. Having instant access to information enables human resources managers to save time and make informed decisions. For example, Alberni is an AI agent for global HR and legal compliance. In seconds, Alberni can answer questions about global labor laws and compliance, as well as questions regarding hiring costs for employees in over 170 countries.
Conclusion
Artificial intelligence enables HR professionals to improve the employee experience from onboarding to professional development. However, there are issues associated with using AI for HR functions, including transparency, algorithmic bias, privacy and security risks, and lack of human involvement in decision-making. Ethical AI involves balancing technology and humanity in HR to realize the efficiencies of AI while maintaining the human element of managing people.
Alberni can answer global employment questions, generate employment contracts, and streamline your employee experience. Book a demo today.
