The ever pressing need to do more with less is pushing teams across many parts of business to invest in AI to increase team productivity. HR professionals are known early adopters and especially with regards to recruitment, where the use of applicant tracking systems (ATS) is longstanding and widespread.
The use of ATS is understandable. Nobody envies the task facing an already overstretched HR team, whose responsibility it is to sift through large volumes of CVs to provide that all important shortlist for interview. But how can the HR teams using an ATS be confident that the system they are using is returning genuinely unbiased insights into candidate capabilities and fit?
It is an important question facing organisations of all stripes. Last week, Workday hit the headlines following a lawsuit filed in the US. This lawsuit, filed in California, alleges that Workdays’ AI-based recruitment tool has systematically rejected candidates with the relevant skills from marginalised groups including black, disabled and older jobseekers.
The case has brought the question of bias, fairness and accountability in algorithm-driven hiring to the fore. Citing this case, US civil rights advocates are warning that hiring algorithms can automate discrimination. Workday, it should be stated, strongly disputes any alleged bias and maintains this is a case without merit.
Regulators are increasingly demanding that the use of AI in HR is auditable and explainable, with the risk of hefty fines for organisations who fail to comply. The EU AI Act defines any activity in the areas of recruitment, HR or worker management as “high risk” and requires the provision of conformity assessments, usage logs and human oversight for deployments from August 2026. There are also existing regulations which give candidates the right to explanations and a human review of any decisions that materially affect them.
For any organisation seeking to stay on the right side of regulation and identify the right candidates for the right position, we have compiled a three-point checklist (published on dedicated AI site, aiEthix) which clarifies what needs to be done pre-deployment, on deployment and essentials needed for on-going monitoring and governance.
Be advised that even those using an off-the shelf solution have responsibilities regarding the behaviour of their AI-powered platform if it leads to unfair outcomes for the jobseekers they are recruiting.
Further resources
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