EU AI Act - Impact on HR

The EU's upcoming AI Act promises to reshape how Artificial Intelligence is used across industries, and HR is no exception. While AI offers exciting possibilities for streamlining processes and improving efficiency, the Act aims to ensure its responsible and ethical application. Let's delve into how the HR sector will be impacted and what companies can expect.

Risk in Recruitment: Imagine an AI resume screening tool that filters candidates based on keywords, potentially excluding qualified individuals whose resumes don't perfectly match the criteria. This could lead to unconscious bias against certain demographics. The Act requires companies to demonstrate fairness in AI recruitment tools. This might involve using diverse datasets for training the AI, regularly auditing for bias, and incorporating human review throughout the selection process.

Performance Evaluation Under Scrutiny: AI can analyse employee data to assess performance. However, algorithms trained on historical data might perpetuate existing biases. For instance, an AI system might favor extroverted communication styles, unfairly disadvantaging quieter but equally competent employees. The Act mandates clear criteria for AI-powered performance evaluations. Companies will need to ensure the AI considers diverse work styles and maintain human oversight to ensure fair and accurate assessments.

Transparency and Explainability: Imagine receiving a vague performance evaluation based on an AI system's opaque calculations. The Act emphasizes the right to explanation. Companies will need to explain how AI systems reach decisions impacting employees. This could involve providing clearer feedback on AI-generated evaluations or allowing employees to challenge AI-based decisions.

Beyond Compliance. Build Trust. The EU AI Act is more than just regulations; it's about fostering trust in AI within the workforce. Companies can go beyond compliance by educating employees about how AI is used in HR processes and demonstrating its responsible implementation. This could involve workshops on AI bias and open communication channels for employees to raise concerns.

The EU AI Act presents a necessary step towards responsible AI in HR. By mitigating risks and promoting transparency, companies can ensure AI empowers a fair and inclusive workplace for all.