The Impact Of AI On HR: Opportunities, Risks, And Best Practices

Balancing human-AI collaboration for productivity and innovation

Artificial intelligence (AI) has revolutionized many aspects of various industries, and the human resources field is no exception. AI applications are being utilized in many areas of the workplace, including recruiting, training, onboarding, employee wellness and talent acquisition.

However, this new and emerging technology does not come without risks and pitfalls. As AI technology advances, it is important to be cognizant of the potential negative implications for human resources and employers in general.

The Hiring Process

AI algorithms can quickly screen and evaluate resumes, cover letters, and other job application materials to determine if applicants meet basic job requirements, saving time and allowing human resource professionals to focus on other tasks. But while AI can increase efficiency and objectivity in employment selection procedures, employers using AI in this regard must be mindful of possible disparate impacts on job applicant pools.

Employers are prohibited from discriminating against job applicants based on race, color, religion, sex, or national origin, pursuant to Title VII of the Civil Rights Act of 1964 (Title VII). Thus, as the Equal Employment Opportunity Commission (EEOC) recently highlighted, the implementation of AI in employment selection procedures raises concerns about potential challenges to the principles of equal opportunity protected by Title VII. For example, if AI algorithms rely on biased data or are programmed with flawed instructions, they could perpetuate existing discriminatory practices or amplify inherent biases in larger quantities.

To mitigate the risks of inadvertent discrimination and to ensure compliance with Title VII, employers should be proactive when implementing AI in employment selection procedures. It is essential that AI algorithms use diverse and representative datasets in their review and selection procedures. Additionally, continuous monitoring and auditing of AI systems should be conducted to identify and remedy any unintended biases that may have emerged over time.

Human oversight is also crucial in interpreting the selections generated by AI algorithms and making final decisions in recruitment. With the right safeguards in place, combining the efficiency of AI with human judgment can strike a balance that respects the legal obligations of employers while simultaneously streamlining the hiring process.

Automation of Jobs

Another significant and commonly discussed effect of AI on the workplace is the automation of job functions, which has the potential to replace certain jobs entirely. AI-powered systems can certainly streamline repetitive tasks, increase productivity and optimize efficiency. However, as automation expands, concerns arise regarding the displacement of jobs and unemployment. Some roles may even become obsolete, dictating a shift in the skills required for employment.

The increasing use of AI in the workplace may also result in reduced human interaction and personalization. While digital assistants are efficient in handling routine inquiries, they may not provide the same level of empathy, understanding and nuanced responses that humans would. This lack of personalization may impact employee satisfaction and engagement, resulting in retention issues. Decreased interaction can also weaken the quality of customer interactions, particularly in industries where personal communications and relationships are vital. Consumers are likely already experiencing both the efficiency and frustrations caused by AI technology in their customer service interactions.

Data Privacy

The increased use of AI technology in the workplace also raises privacy concerns because of its heavy reliance on data collection and analysis. This data collection can create significant concerns about privacy and security in the workplace, as employees themselves may worry about the collection and storage of personal information, as well as the potential misuse or mishandling of their data.

Likewise, employers have reason to be concerned about employees disseminating confidential and proprietary business information into AI systems. It is critical for employers to implement robust data protection measures, ensure compliance with privacy regulations, and establish clear guidelines on data usage and retention to address these concerns. Employers should review and update their employee handbooks to ensure proper guidance regarding privacy and data policies.

AI technology brings both opportunities and challenges to the workplace and human resources professionals. The balance and collaboration between human beings and AI technology nevertheless hold promise for a future of increased productivity and innovation. By understanding and proactively addressing the impact of AI on employment issues, employers can reap the benefits while creating a foundation that prioritizes and protects the well-being and continued success of the human workforce.

Author Bios

	Chandler Aragona is an Associate in Burr & Forman’s Charleston office, where she’s a member of the firm’s Labor and Employment practice group.
	Emily Mack is a Partner in Burr & Forman’s Nashville office, where she handles employment law and complex litigation matters for businesses.