Artificial Intelligence (AI) has impacted almost every industry and function of organisations, and recruitment is no exception.

With the introduction of AI into more and more products in the last twelve months, it is becoming increasingly essential to grasp its implications for recruitment. Potential biases in relation to protected attributes in Australia has raised the most concerns.

Protected attributes are those attributes identified as being particularly vulnerable to discrimination and prejudice. Including the more recently introduced protected attributes, these include:

• race, colour
• sex
• sexual orientation
• age
• physical or mental disability
• marital status
• family or carer's responsibilities
• pregnancy
• religion
• political opinion
• national extraction
• social origin
• breastfeeding
• gender identity
• intersex status
• people experiencing family and domestic violence

In this article, we explore the issue of AI bias in recruitment and considerations for Australian companies to ensure fair and inclusive hiring practices.

Understanding AI Bias in Recruitment

AI bias occurs when algorithms used in recruitment processes produce unfair outcomes, often reflecting existing societal biases. These biases can manifest in various ways, such as favouring certain demographics over others, perpetuating stereotypes or rewarding those who have been afforded the most opportunity. For instance, if an AI system is trained on historical hiring data that predominantly includes candidates from a specific gender or ethnic background, it may inadvertently favour similar candidates in the future.

The consequences of AI bias in recruitment can be significant. It can lead to a lack of diversity in the workplace, which in turn can affect innovation, creativity, and overall company performance. Moreover, biased hiring practices can damage a company's reputation and result in legal challenges related to discrimination.

Guidelines for Reducing AI Bias

To address AI bias in recruitment, the Diversity Council Australia (DCA) released guidelines last year to help employers select and deploy AI tools effectively. These guidelines emphasise the importance of considering diversity and inclusion when using AI in recruitment. Key recommendations include:

1. Team Up: Form diverse teams to leverage different perspectives and expertise in identifying and addressing biases.
2. Reflect: Regularly assess and reflect on the AI tools being used to ensure they align with diversity and inclusion best practice and goals.
3. Educate: Provide training for recruiters and HR professionals on how to use AI tools effectively and ethically, which may include reducing the level of reliance on AI.
4. Acquire: Select AI tools that have been designed with a focus on reducing bias and promoting fairness.
5. Decide: Make informed decisions based on a thorough understanding of the AI tools' design, algorithms, and data sets.

Considerations for Australian Employers

Australian employers need to be proactive in addressing AI bias in recruitment. Here are some key considerations:

1. Legal and Ethical Implications: Ensure compliance with employment discrimination laws and ethical guidelines when using AI in hiring processes.
2. Culturally Relevant Data Sets: Develop and use data sets that reflect the diversity of the Australian population to reduce biases in AI systems.
3. Human Oversight: Combine AI tools with human judgment to ensure a balanced and fair recruitment process.
4. Continuous Monitoring: Regularly monitor and evaluate AI tools to identify and mitigate any biases that may arise over time.

Understanding how your internal hiring managers or recruitment providers are utilising AI, and the level of human judgement involved is a key starting point. External recruiters represent your organisation, which means bias in the recruitment process can still lead to reputational damage for your organisation, even if the legal implications fall on the provider.

AI has the potential to transform recruitment processes, but it is crucial for Australian companies to be aware of and address the risks of bias. By following guidelines and best practices, organisations can harness the benefits of AI while promoting diversity, inclusion, and fairness in their hiring practices.

If you’re looking for an ethical recruitment provider, contact Bayside Group today.