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Importance of AI policy for recruitment process

  • By saumy tripathi
  • September 30, 2024
  • 5 mins read
AI policy for recruitment
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    Over the last three years, Artificial Intelligence(AI) has revolutionized. What we considered a distant dream has become a reality, with AI performing several tasks. One of them is recruitment. Companies have wasted huge resources over the years to ensure they find the perfect hiring policy.

    Now, the rise of AI has given companies an edge over their competitors. While AI has not taken over the process entirely, it has immensely helped improve the hiring process. However, the rise has been so rapid that laws and guidelines have failed to keep up with it.

    This means that companies are now struggling to form a policy that regulates and governs the use of AI in hiring. In the absence of strong legal laws or guidelines, companies are bound to make mistakes as they struggle to find the right checks and balances while deploying AI in hiring. 

    AI is powerful, no doubt, but it is still in its infancy and is not completely reliable, especially without human intervention. However, before we decide what constitutes an AI recruitment policy, we must first understand why we need it.

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    Importance of AI policy for recruitment

    Technology is now advancing at such a rapid pace that any organization that does not adapt finds itself left behind the competition. Businesses understand that, and thus, they should raise their voices to get the attention of their government, be it at the central, provincial, or local level.

    As hard as companies may try, their guidelines are more effective when backed by government legislation. Several laws, such as the European Union (EU) AI Act and the much more recent Colorado AI Law, are of great use in this area.

    Not every organization has the financial resources and manpower to build AI guidelines from scratch. This is why AI laws are helpful, as companies know where to begin. For example, the Colorado AI law is specifically made to consider how AI is used in businesses.

    However, this law will come into force on February 1, 2026, as the government wants to give companies time to update themselves before they deploy AI. Such laws are being made to ensure companies follow ethical standards while using AI.

    The EU AI Act is perhaps one of the strongest laws regulating the use of AI. For example, the law states that any use of AI deployed without the intervention of humans should be avoided. This includes any technology that uses biometric data or can significantly impact the fundamental rights of EU citizens.

    We must also realize that some companies, in pursuit of profit, might deploy AI without complying with regulations. This is why New York’s Automated Employment Decision Tools (AEDTs) law bars companies from using any AI tool impacting employees without conducting a bias audit to show that there is no discrimination in the workplace.

    Also Read: 13 Stay Interview Questions to Retain Your Top Talent

    What should the AI policy be for recruitment?

    Make your company ready for AI deployment 

    The first step in making guidelines is to ensure that your company is ready for AI to be integrated into the workplace. The organization must also identify areas where it might want to deploy AI first. For example, if a company wants to use AI in its hiring process, it must first start by making its recruiters understand that their work is becoming AI-assisted and not AI-dependent.

    Once your hiring department is onboard, the next step is training them. During training, recruiters must first be taught the limitations of AI and how to recognize where to let the AI do its job and where to intervene.

    In a scenario where the company tries to induct AI into other areas of the company, the same process should be repeated with other employees.

    Also Read: Soft vs hard skills? What is more important in today’s world?

    Keep a dynamic AI policy 

    As mentioned earlier, AI is witnessing such a meteoric rise that companies have to constantly keep up. And the same goes for the guideline. So, organizations need a dynamic policy that can be constantly updated. 

    For example, companies and governments still need to figure out how to ensure AI collects data ethically. The guidelines for data collection should be based on the following presumptions:

    • What type of data will be collected by the company?
    • Who will have access to the data?
    • Will the data be transferred worldwide to different data centers outside the country from which it is collected?
    • How will the data be used?
    • How much time will the company need to keep the date before it is deleted?

    Following the above points, companies can form a strong and robust data policy.

    Also Read: How are recruitment satisfaction surveys helpful for companies

    Allow for third-party audits 

    Even after taking security measures, companies are bound to make mistakes, considering the complexity of the issues. So, the company’s focus should be on minimizing the errors rather than avoiding them altogether.

    This is where third-party audits can be very useful. Third-party audits allow companies to outsource their AI checks to a company, thus saving them from spending resources and building a full check-and-balance system from scratch.

    It also allows companies to establish their internal infrastructure by relying on these third-party audits before they are capable of operating it independently.

    Also Read: Do we still need people in the age of Artificial Intelligence

    Encourage feedback 

    At the end of the day, the AI policy for recruitment affects employees, so their feedback must be valued. For example, if they are deploying a hiring AI tool, then they must get regular updates from recruiters to check whether this shift to AI is actually benefiting the company.

    Organizations also need to conduct regular sessions with each employee to ascertain their view on this adoption of AI. Companies should also develop guidelines for situations where AI is used in a way that may be unethical or even illegal. This part of the policy must be based on the following presumptions:

    • How do we measure the severity of a transgression?
    • What set of measures should be taken when such incidents occur?
    • How do we coordinate with law enforcement if the AI transgression is classified as a crime under the law of the land?
    • How to address a new change in the field of AI?
    • How can we ensure there is a robust system for redressal?

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    Our product analyzes the interview and gives helpful suggestions to the interviewers on what questions to ask and to maintain the speed of the interview. In addition, it also analyzes the recruiter to ensure the interview process is not discriminatory in any way. Our tool can raise an alert if the hiring manager is asking for information which may be pertinent to the interview or the job description. This ensures perfect checks and balances in the system.

    We also provide interviewer training to ensure organizations  have the perfect team for the job. Furthermore, we also provide interview as a service in which we will conduct the entire interview process on the behalf of an organization.

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