Every time you open your inbox or scan trending news articles, you are sure to come across something about Artificial Intelligence (AI). AI has quickly become a hot topic across industries, including Human Resources (HR). A fear that has come out of the quick growth of AI is that it will replace workers. The Biden-Harris Administration has recognized these concerns and taken steps to strengthen worker empowerment and well-being while addressing risks to workers. The Department of Labor (DOL) has been directed to establish key principles that protect workers and ensure they are included in determining how AI technology is developed and used. While this guidance is non-binding, Microsoft and Indeed immediately committed to adopting these principles in their workplaces. As more and more companies develop and deploy AI systems, understanding and implementing the DOL’s principles will be important to maintaining ethical standards and fostering a positive work culture. Principles for the Development & Deployment of AI Systems in the Workplace Released on May 16, 2024, President Biden’s Executive Order outlined the following principles from the DOL as a guiding framework for businesses: Centering Worker Empowerment Ethically Developing AI Establishing AI Governance and Human Oversight Ensuring Transparency in AI Use Protecting Labor and Employment Rights Using AI to Enable Workers Supporting Workers Impacted by AI Ensuring Responsible Use of Worker Data When implementing these principles, employers should consider the whole lifecycle of AI – design, development, testing, training, deployment, use, oversight, and auditing. Fairness and Non-Discrimination AI systems should be designed and implemented in ways that do not perpetuate bias or discrimination. This needs to be particularly emphasized when using AI in hiring, promotions, and other HR processes. Companies must ensure that AI tools are tested for biases and that measures are in place to mitigate any identified biases. It is also important to conduct ongoing audits, as many AI systems utilize continual learning or learned features from previous tasks that could introduce bias or discrimination as the tool is used. Transparency Employees have the right to understand how AI decisions are made, especially when these decisions affect their careers. Transparency involves clearly communicating the role of AI in company processes and ensuring that AI-driven decisions can be explained in understandable terms. Privacy and Confidentiality Protecting employee data is a high priority. AI systems should have stringent data privacy standards to ensure that personal information is kept confidential and secure. Companies need to be transparent about data collection practices and obtain informed consent from employees. Accountability There must be clear accountability for AI systems. This involves establishing governance frameworks to oversee AI implementation and ensure compliance with ethical standards and legal requirements. Companies should have designated roles and responsibilities for monitoring AI systems. It is also imperative that companies have policies in place on how AI should be used in their workplace. These policies should be developed in consultation with the company’s IT department to ensure they cover security and systems requirements in addition to details on how and when AI can be used. Worker Empowerment and Rights AI should be used to empower workers, not undermine their rights. This principle advocates for the use of AI to enhance job satisfaction, provide career development opportunities, and respect workers’ rights. Employees should be involved in discussions about AI implementation and have access to training on new AI tools. This training can provide upskilling opportunities for employees which has proven to be a cornerstone of engagement and retention. Key Considerations for Using AI in HR When integrating AI into HR processes, companies need to be mindful of several critical factors to align with the DOL’s principles and foster a positive work environment. Bias and Fairness AI algorithms can inadvertently perpetuate existing biases in hiring and promotions. To counter this, companies should: Conduct Bias Audits: Regularly audit AI systems for biases and take corrective actions. Diverse Data Sets: Use diverse and representative data sets to train AI models. Human Oversight: Ensure that there is human oversight in AI-driven decisions to catch and correct any biased outcomes. Transparency and Communication Clear communication about AI’s role in HR processes is essential. Companies should: Disclose AI Use: Inform employees about where and how AI is being used in HR processes. Explain Decisions: Provide explanations for AI-driven decisions that affect employees. Feedback Mechanisms: Establish channels for employees to provide feedback on AI tools and processes. Data Privacy and Confidentiality Maintaining the privacy and confidentiality of employee data is critical. Companies should: Data Encryption: Use robust encryption methods to protect data. Access Controls: Implement strict access controls to limit who can view or handle sensitive data. Privacy Policies: Develop clear privacy policies and ensure employees are aware of them. Accountability and Governance Effective governance frameworks are necessary to manage AI in HR. Companies should: AI Governance Boards: Establish AI governance boards to oversee AI implementation and ethical compliance. Regular Reviews: Conduct regular reviews and audits of AI systems to ensure they adhere to ethical standards. Clear Roles: Define clear roles and responsibilities for those managing and monitoring AI systems. Worker Empowerment and Rights AI should be leveraged to enhance the worker experience. Companies should: Skill Development: Use AI to identify skill gaps and provide targeted training and development opportunities. Job Satisfaction: Implement AI tools that enhance job satisfaction and work-life balance. Employee Involvement: Involve employees in the development and implementation of AI tools to ensure their needs and concerns are addressed. Tips for Efficiently Integrating AI into Daily Work Integrating AI into daily HR work can enhance efficiency and improve outcomes. Here are some tips for a smooth integration: Start Small and Scale Pilot Programs: Begin with pilot programs to test AI tools on a small scale before a full rollout. Incremental Implementation: Gradually integrate AI into HR processes to allow time for adjustments and improvements. Invest in Training Employee Training: Provide comprehensive training for employees on how to use AI tools effectively. Continuous Learning: Encourage continuous learning and provide resources for employees to stay updated on AI advancements. Collaborate with Stakeholders Cross-Department Collaboration: Collaborate with other departments, such as IT and legal, to ensure a comprehensive approach to AI. Employee Feedback: Regularly seek and incorporate employee feedback to refine AI tools and processes. Monitor and Evaluate Performance Metrics: Establish clear performance metrics to evaluate the effectiveness of AI tools. Regular Audits: Conduct regular audits to assess compliance with ethical standards and identify areas for improvement. Maintain Human Touch Human-AI Collaboration: Ensure that AI complements human decision-making rather than replacing it entirely. All aspects of AI should have human oversight. Personalized Interactions: Maintain personalized interactions in processes where human empathy and understanding are crucial. Focusing on fairness, transparency, privacy, accountability, and worker empowerment will allow companies to create a positive work environment while taking advantage of the benefits of AI in business processes. Intentional implementation, continuous evaluation, and a commitment to ethical standards will allow companies to harness the power of AI while safeguarding the well-being of their employees. Employer Services Corporation provides clients with guidance on employee well-being across the employee experience. Contact us for more information on how ESC can support your business. Note: This blog was written with the assistance of AI and a significant dose of human oversight!