Foley & Lardner LLP Partner Kenny Broodo is quoted in The Business Journals article, “Four under-the-radar issues that could trip up employers in 2023,” discussing the growth of artificial intelligence (AI) as a tool for human resources functions.
Broodo said employers need to take precautions when utilizing AI for human resources, noting the technology can have both human and systemic bias, which could put employers at odds with federal law.
“AI for HR is enticing, but there is no established risk management guidance for businesses adopting AI tools to support HR decisions in hiring, promotion, performance ratings, or termination,” he explained.
Broodo suggested employers verify the validation of any third-party AI tool they plan to use for HR to ensure it is devoid of statistically unintentional bias and that is has been adjusted for any legal requirements on equity, inclusion, and diversity. He also noted employers should work with attorneys on indemnification clauses to protect themselves from unintended consequences of using AI in HR.
“When it comes time for annual review of insurance coverages and riders, coverage for AI use should be called out as a separate point to consider,” he said.
“Viable HR practices keep employees informed of how they’re doing, what’s expected, where they can grow, and how the employer will train and help them,” Broodo added. “Deploying AI toward that effort will require employee disclosure of the kinds of data and decision points being crunched behind the algorithmic curtain.”