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Firms Warned About Data Risks When Using AI for Recruitment

Last updated: 26 Nov 2024 10:00 Posted in:

Organisations must ask key questions around data and fairness when procuring AI tools to assist with their staff recruitment processes, the Information Commissioner's Office (ICO) has warned.

It said many recruiters may be looking to procure these tools to improve the efficiency of their hiring process, helping to source potential candidates, summarise CVs and score applicants. However, the ICO warns that, if not used lawfully, AI tools may negatively impact jobseekers who could be unfairly excluded from roles or have their privacy compromised.

A recent ICO audit of several providers and developers of AI tools for the recruitment industry uncovered considerable areas for improvement, such as ensuring personal information is processed fairly and kept to a minimum, and clearly explaining to candidates how their information will be used by the AI tool.

The regulator made almost 300 clear recommendations for providers and developers to improve their compliance with data protection law, all of which have been accepted or partially accepted. Its audit outcomes report summarises the key findings from these audits, as well as practical recommendations for recruiters wishing to use these tools.

Ian Hulme, ICO director of assurance, said: “AI can bring real benefits to the hiring process, but it also introduces new risks that may cause harm to jobseekers if it is not used lawfully and fairly. Organisations considering buying AI tools to help with their recruitment process must ask key data protection questions to providers and seek clear assurances of their compliance with the law.”

 

The ICO has published some key questions organisations should ask before procuring an AI tool for recruitment. They are:

· Have you completed a Data Protection Impact Assessment (DPIA)?

· What is your lawful basis for processing personal information?

· Have you documented responsibilities and set clear processing instructions?

· Have you checked the provider has mitigated bias?

· Is the AI tool being used transparently?

· How will you limit unnecessary processing?

 

The regulator will be delivering a webinar on Wednesday 22 January 2025 for AI developers and recruiters so they can learn more about the findings and how they can be applied. For more information visit the ICO’s website.

"Organisations considering buying AI tools to help with their recruitment process must ask key data protection questions to providers and seek clear assurances of their compliance with the law.”

Ian Hulme, Director of Assurance, ICO