The pitfalls for recruiters using AI in the recruitment process

We acknowledge that AI is an extremely powerful tool for recruiters. Its ability to filter through CVs and job applications to identify particular skills, qualifications and/or experience makes the recruitment process quicker and more cost effective. However, as stated in the Information Commissioner's Office November 2024 blog, if AI is “not developed lawfully, these tools may negatively impact jobseekers who could be unfairly excluded from roles or have their privacy compromised.” 

When examining CVs and job applications, AI indirectly plays a crucial part in promoting inclusivity in the labour market. It does so by assessing candidates objectively on their qualifications, experience and skills rather than demographic factors.  

However, to ensure employers and recruiters comply with their obligations under the Equality Act 2010, they must ensure AI does not discriminate against applicants based on protected characteristics. Due to the complexity of AI algorithms, it can be difficult for applicants to understand the reason why they have been rejected from a position. From their perspective, it may appear that they were perfectly suited for the role but their application failed due to their age, gender, religion etc. This ambiguity could lead to allegations of discrimination against recruiters/employers. We advise recruiters using AI be alive to this issue and ensure applicants are provided transparent feedback as to why they were rejected from a role.  

Another consideration for recruiters when using AI in the recruitment process is data protection risks. Recruiters must ensure they comply with GDPR and the Data Protection Act 2018. 

AI systems are large language models, meaning they learn from the data they examine. In the recruitment process personal data will be processed by AI and used, albeit in the background, to develop the AI’s own examination features. This raises the concern that an applicant’s data is not being used in the way that they have consented to.  

Further, it is apparent that if AI is used in the recruitment process then it will be processing a large amount of applicants’ personal data. This, of course, runs the risk of a data breach as personal information may be released by an untrusted AI platform. We advise recruiters use only reputable AI services with thorough data protection policies to safeguard applicants’ personal information.  

Finally, the Conduct of Employment Agencies and Employment Businesses Regulations 2003 require employment businesses to obtain confirmation that a work seeker has the necessary experience, training and skills to work in the position the hirer wishes to fill. They also require employment agencies and employment businesses to obtain confirmation that the work seeker is willing to work in the position which the hirer wishes to fill. With more applicants for work now using AI to assist with writing their CVs, recruiters must ensure they verify the skills, experience and qualifications that candidates claim to hold are actually accurate. The Regulations provide for civil remedies if employment agencies or employment businesses do not comply with their obligations. If that non-compliance causes a resulting loss, this could result in the employment business or employment agency being sued for damages.