Heed EEOC's new guidance on AI liability.

The EEOC is warning employers that using artificial intelligence in the hiring process could perpetuate discrimination. It argues that certain AI programs may be designed in ways that either actively discriminate against members of a protected class or have an adverse impact on them.

Example: Let's say an employer uses AI software to screen resumes and create a list of candidates to interview. However, the list includes fewer women than one would expect, based on demographic statistics. That could trigger a costly discrimination lawsuit.

EEOC's new AI guidance

The EEOC just issued a technical assistance document entitled "Assessing Adverse Impact in Software, Algorithms and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964." The guidance applies to the use of AI in making decisions about hiring, promotions and terminations, including determining who will go and who will stay during a reduction in force. It also covers the use of AI to screen resumes, conduct initial video interviews, sort candidates based on their interview performance and test applicants for subjective qualities such as cultural fit.

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