A late-2024 survey by Insight Global found that 99% of hiring managers report using artificial intelligence (AI) in some capacity during the hiring process. As employers increasingly use AI tools in hiring, performance management and other personnel decisions, labor and employment attorneys say organizations also need to understand the legal, privacy, and compliance risks that can accompany them.
“I think the biggest risk right now is over-reliance or overly trusting AI to make employment decisions,” said Ibrahim Tariq, a partner and member of the Labor and Employment Practice Group and Artificial Intelligence Industry Team at Harris Beach Murtha. “The reason for that being at the end of the day, any decision around hiring, advancement, promotions, compensation, that’s a human choice.”
From what Tariq has seen, where AI tends to be a problem for HR and for management is when a company is relying solely on the output generated by AI. For example, a company might upload employee sales numbers, performance metrics, or other workplace data into an AI platform and then use the output to help determine promotions, raises, or disciplinary actions.
“The challenge becomes whether the AI has properly accounted for...
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