Without transparency and stronger safeguards, AI-driven recruitment could spark a new wave of legal disputes
Australian employers are increasingly turning to artificial intelligence to screen job applicants – but there is still no legal requirement to tell candidates when algorithms, not humans, are making key decisions about their careers.
That gap is “strange” and increasingly unsustainable given the rapid uptake of AI in recruitment, said Melini Pillay, principal at McCabes, in conversation with HRD.
Research from the University of Melbourne and the Responsible AI Index shows around 62% of Australian organisations already use AI in recruitment processes, with even higher adoption among global businesses. Yet there is no explicit law requiring private-sector employers to disclose AI use in job ads or hiring.
“It certainly feels necessary that some regulation be introduced or parameter requirements on disclosure be made,” Pillay said, pointing to the “significance of recruitment processes” and people’s basic right to earn a living.
“At the very least, you would like to know how employers using AI to screen applicants account for any bias in the algorithm.”
While there is no dedicated AI disclosure regime for private employers, Pillay noted some existing frameworks already brush up against AI in recruitment.
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