2020 is here, and as we usher into the new decade, it brings a bouquet of promises and opportunities for the tech powered recruitment industry. And as they say, with great power comes great responsibility. This is where regulation will play a pivotal role in governing the growth for talent assessment solution providers. Keeping data privacy at the core of the value delivered is expected to emerge as a top priority for recruiters and solution providers alike. The spotlight is likely to shift from product features to compliance and from brand name to credibility.
Last year was marked with emerging trends in the HR tech space with AI always at the center of the conversation. From AI-enabled resume evaluations to video interviews, recruiters have been empowered with sophisticated and scalable solutions to shape the future of hiring. The conversation now has moved beyond just ‘knowing’ AI to ‘adoption’ with arms wide open. The Littler Annual Employer Survey 2019 revealed that more than 35% responded that their organization is using artificial intelligence (AI) in the recruiting and hiring process. This survey included over 1,300 in-house counsel, HR professionals and C-suite executives and acts as a valid testimony for the rise of AI.
As AI adoption signals tremendous scope in enabling tech enabled hiring, compliance and regulations are a logical need for the industry. In wake of this sentiment, Illinois recently sanctioned the Artificial Intelligence Video Interview Act (AI Interview Act). The AI Interview Act is the first U.S. law that establishes a guideline for employers’ use of AI in the hiring process.
Employers need to understand the guiding tenets of this law to ensure their AI service providers are compliant under the service agreement in adherence to the law. The law came into effect on Jan 1, 2020 and states that employers who use artificial intelligence for video interview need to ensure the following:
- Provide a Disclaimer: As an employer, you must communicate to the applicants that AI will be used to analyze their interview videos. (A provision requiring written notice has been removed from the bill and is now non-essential.)
- Explain the process: Employers must explain to the applicant how their artificial intelligence video platform works and what characteristics the AI uses to evaluate the fitment of an applicant for the position.
- Obtain consent: Employers must acquire the applicant's consent to be assessed by AI before the video interview and should not enforce AI to evaluate a video interview without consent.
- Confidentiality ethics: Employers will be allowed to share the videos only with professionals whose expertise or technology is indispensable to evaluate the applicant.
- Destroy copies: Employers must destroy the original video and its copies within 30 days after an applicant has requested for such destruction (and instruct others who have copies of the video to destroy their copies as well).
Critics may have a counter argument to this as the law being too futuristic, but the truth is that future has already arrived. Many leading organizations have been extensively using AI-scored video interviews to evaluate candidates and make hiring decisions.
While AI is witnessing substantial adoption, regulations like the AI Video Interview Act is an indication of the evolution of progressive regulations. The act is an instrument to synchronize the vested interests of all parties involved in video interviews – employer, candidate and the solution provider. And in all fairness, it is an ethical move.
Aspiring Minds’ products have been designed to meet and exceed the highest legal standards and professional guidelines. And, we support the AI Video Interview Act and any legislation which will ensure that all AI vendors meet the same high standards of fairness and transparency. As candidate privacy has always been a priority at Aspiring Minds, we are in full compliance with not only this legislation but others like GDPR, EEOC and more.
There is no doubt that despite aggressive growth of AI across industries, especially HR Tech industry, regulations have been a little slower to arrive. But, that only builds a case for AI driven talent evaluation providers to act responsibly and ensure their assessments are fair, transparent and ensure that candidate’s interests are always safeguarded.