You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 28, 2023

The Dangers of Employee Recruitment on Autopilot: AI and Discriminatory Hiring Decisions

Instead of the typical dystopian scene of flames, wastelands of shattered buildings, and robotic overlords policing the remaining humans, our actual dystopian future may be a workplace filled only with men named Jared who once played lacrosse in high school. This may sound far-fetched, but one resume-screening tool was found to be using an algorithm that concluded two factors were most determinative of job performance: the name Jared and a history of playing lacrosse in high school.

The frailties of artificial intelligence (AI) systems in recruitment and hiring could transform our workforces in unpredictable ways. If employers blindly follow AI outcomes without a deeper examination of how the algorithmic decision is reached, hiring outcomes may be not only ridiculous but also discriminatory.

Risks of AI-Reliant Hiring

Some employers have enthusiastically embraced AI as a way to reduce costs and replace human bias in the recruitment process. Human recruiters do not have a great track record; for example, in France, discrimination in recruitment has posed such a serious problem that the government submits false work biographies with ethnic names to identify and punish employers that unreasonably reject qualified ethnic applicants. Unfortunately, AI is modeled on human thinking, so it may amplify our own prejudices and errant conclusions while giving the appearance of providing a fair and clean process.

AI typically learns inductively by training on examples and historical data. Factors such as exclusion of certain groups from educational or career opportunities has often shaped this data, so AI’s decisions may amplify this past prejudice. For instance, Amazon experimented with mechanized recruitment in 2014, but abandoned these efforts prior to implementation after the AI tool selected a predominantly male workforce. The AI learned by analyzing patterns in resumes submitted to the company over the last 10 years. Since over this period men submitted the most resumes, the AI concluded that male candidates were preferable. In rating candidates, the AI downgraded resumes including the word “women” (such as in mentions of women’s sports) and those where the applicants attended female-only universities.

Besides illustrating how AI may rely upon historical data without examining the underlying reasons for historical trends, Amazon’s failed attempt at automated recruitment also exemplifies AI’s flaw of confusing correlation with causation. It appears that Amazon’s recruitment AI concluded that Amazon had hired more men than women over the last 10 years due to a difference in skill level. However, studies in respect to gender disparity in the tech industry suggest that societal gender expectations steering women towards more stereotypically female jobs and other obstacles in respect to educational opportunities arising from discrimination, may more accurately account for the imbalance.

The AI resume-screening example mentioned at the outset of this article—the recruitment tool that had a preference for former lacrosse players named Jared—also demonstrates AI’s inability to distinguish correlation from causation. The algorithm observed that many high performing employees had the name Jared and had played lacrosse in high school, so concluded that these factors caused the high performance rather than correlated with them.

Rules programmed into the AI may also have unintended consequences. For example, one employer prepared STEM job advertisements to be gender-neutral, but the algorithm disproportionately displayed them to male candidates because the cost of displaying them to female candidates was higher, and the algorithm had been programmed to be cost efficient. Facial and voice recognition software has also been shown to downgrade applicants of different races or with speech impediments, effectively discriminating on the basis of race or disability.

What Employers Can Do

To combat discriminatory and illogical hiring decisions, users of AI recruitment tools should ideally be able to identify the algorithmic decision by deconstructing the AI decision-making process. However, as AI’s complexity increases it is becoming more and more difficult (or even impossible) to reverse-engineer algorithms based on machine learning.

Instead, the most feasible approach to determining whether an algorithm is biased appears to be running samples of data sets in advance of using the system for recruitment. The city of New York recently passed a law (to be enforced starting in July 2023) that requires employers to conduct a bias audit of employment decision tools prior to their implementation, in addition to informing candidates and employees resident in New York about the AI tool and the job qualifications and characteristics it will take into account. The state of New Jersey is taking a similar approach, with a bill that would require sellers of automated employment decision tools to conduct a bias audit within one year of each sale, and to include yearly bias audits within the sale price of the tool. This approach of requiring regular bias audits for AI recruitment tools may be adopted by other legislators around the world as lawmakers attempt to catch up to the realities of AI’s role in the hiring process as well as the social and legal implications of leaving it unchecked.

In the meantime, employers would be well advised to include human oversight in the recruitment process and to be critical of the outcomes of AI recruitment tools. Enlisting the aid of outside experts or neutral third parties can also help ensure compliance with employment regulations that fight bias and other unfair recruitment practices.

If one day you look around the office and find yourself surrounded by an army of “Jareds” with former lacrosse careers, it may be necessary to take your recruitment process off autopilot and have an actual human being review applications.

RELATED INSIGHTS​ 

February 7, 2025
Vietnam’s political system is currently undergoing a significant reorganization to streamline government operations and improve efficiency. In this regard, Plan 141/KH-BCDTKNQ18, issued on December 6, 2024, provided guidelines on the restructuring of existing ministries, ministerial-level agencies, and government-affiliated agencies. Accordingly, the number of ministries is being reduced from 18 to 14 through mergers and consolidations and the establishment of a new Ministry of Ethnic and Religious Affairs. The number of ministerial-level agencies is being reduced to three, and government-affiliated agencies to five. Similar streamlining is happening at provincial levels. The newly consolidated state agencies will assume all functions, rights, and responsibilities of the merged entities, and will continue handling all ongoing matters previously handled by the former agencies. Some examples of these changes include the following: The Ministry of Science and Technology (MOST) will oversee telecommunications, IT applications, cybersecurity, e-transactions, and national digital transformation, which had previously been managed by the Ministry of Information and Communications (MIC). MOST will also be responsible for issuing licenses related to these areas, such as licenses for G1 online game services and telecommunication services. The Ministry of Culture, Sports, and Tourism will assume the responsibility of press management, previously under the MIC. The Ministry of Finance will assume state management functions related to investment, previously handled by the Ministry of Planning and Investment. Provincial Departments of Finance will issue Investment Registration Certificates and Enterprise Registration Certificates, a responsibility previously held by the Departments of Planning and Investment. The Ministry of Home Affairs will oversee labor and employment matters. Provincial Departments of Home Affairs will be authorized to issue work permits and will be the designated authorities for companies to register their internal labor regulations. Advantages for Businesses The restructuring aims to simplify regulations and expedite licensing processes. By reducing the number of agencies
January 2, 2025
On December 27, 2024, a new minimum daily wage rate in Thailand was published in the Government Gazette, taking effect on January 1, 2025. With these changes, the minimum daily wage in 2025 ranges from THB 337 to THB 400, up from the previous THB 330 to THB 370, depending on the province. For most provinces, these rates reflect an increase of THB 7 per day, except for the following provinces and districts, which have increases of THB 9–55 per day: Bangkok Chon Buri Hat Yai District in Songkhla Ko Samui District in Surat Thani Mueang Chiang Mai District in Chiang Mai Nakhon Pathom Nonthaburi Pathum Thani Phuket Rayong Samut Prakan Samut Sakhon The full table of minimum daily wage rates is below. For more details on the new minimum wages, or any aspect of labor and employment in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].
December 27, 2024
Thailand has issued a series of regulations implementing the Employee Welfare Fund, which was established under the Labour Protection Act B.E. 2541 (1998) (LPA) but had remained unimplemented since the law’s enactment. The Employee Welfare Fund provides financial support to employees in cases such as termination of employment, death, and other circumstances as specified by the Employee Welfare Fund Committee. Under the LPA, employers with more than ten employees are required to register their employees with the Employee Welfare Fund if they do not offer employees a provident fund or comparable assistance for employment termination or death. With the new regulations detailed below, employers are now able to comply fully with this requirement. Implementation Timeline and Details On November 15, 2024, the Royal Decree Determining the Period for Starting the Collection of Savings and Contributions to the Employee Welfare Fund was officially enacted and published in the Government Gazette. According to this royal decree, contributions to the Employee Welfare Fund will commence on October 1, 2025. Two ministerial decrees followed on November 22, 2024—one setting the withholding and contribution rates, and the other outlining minimum levels of financial assistance due in cases of employment termination or death. The Ministerial Notification Specifying the Rate of Savings and Contributions stipulates the required rates for contributions to the Employee Welfare Fund and establishes a five-year initial period with reduced contribution rates. From October 1, 2025, to September 30, 2030, employers and employees are each required to contribute 0.25% of wages to the Employee Welfare Fund. Starting October 1, 2030, employers and employees will each be required to contribute 0.5% of wages. The Ministerial Notification Specifying Criteria and Procedures for Employers to Provide Assistance in Cases of Employment Termination or Death establishes the guidelines employers must follow when offering financial assistance to employees
December 9, 2024
Attorneys at Tilleke & Gibbins in Phnom Penh have contributed the Cambodia chapter to Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Cambodia chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Cambodia chapter was authored by associates Mealtey Oeurn, Saryda Ou, Chanvisal Lok; and Jay Cohen, partner and director of the firm’s operations in Cambodia. Tilleke & Gibbins also contributed the Vietnam and Thailand chapters to Labor and Employment Disputes 2024. The full Cambodia chapter is available below as a PDF.