By Harry Dhillon, Director, Recruit & Hire, GoGlobal
As AI rapidly transforms the world of business, its evolving role in shaping the future of hiring comes with both unprecedented potential and pressing ethical challenges.
A midyear survey conducted by McKinsey in 2024 found that AI applications in businesses had more than doubled compared to 2023. This rapid adoption reflects the growing reliance on AI to streamline operations, increase efficiency and optimize decision-making.
However, the enthusiasm for AI is far from universal, especially when it comes to diversity and inclusion in hiring practices. While AI offers undeniable advantages, a report by the World Economic Forum reveals that only 62% of business leaders are confident their organizations can currently implement AI in a responsible and trustworthy manner. Among employees, confidence drops further, with just 52% expressing trust in AI’s ethical use.
This skepticism stems from a critical concern: AI, when not properly managed, can reinforce existing biases in hiring and lead to impersonal interactions. For international companies with cross-border operations and diverse workforces, these biases can be even more damaging. If not tempered, they can even exacerbate inequalities and undermine efforts to foster inclusive environments.
AI and bias reinforcement
AI promises to reduce human bias by focusing on objective data, like skills, experience and qualifications, rather than subjective factors. For example, AI can anonymize resumes, removing names, addresses or other identifying information. This information may trigger unconscious bias based on race, gender or socioeconomic background.
When designed and implemented properly, AI can help foster diversity by evaluating every candidate based on the same consistent criteria. However, the reality is that AI systems can be just as biased as the data they are trained on. What happens when an AI model is built using historical hiring data that reflects discriminatory practices, whether overt or unintentional? The algorithm will likely replicate and even magnify these biases.
This phenomenon, known as “algorithmic bias,” can have devastating consequences for diversity and inclusion. There have been notable cases where AI-driven hiring tools have disproportionately favored men over women or candidates from majority backgrounds over minority groups. These trends effectively narrow the pool of talent rather than broaden it.
While AI can make the hiring process more efficient, it can also make it less personal. Automated systems that screen and interview candidates may fail to capture the nuances of human interaction. This may include factors such as a candidate’s potential, cultural fit and his or her ability to meaningfully contribute to team dynamics.
Such an impersonal approach can alienate candidates in the long term. It leaves hiring decisions overly dependent on rigid criteria that do not reflect the complex nature of human talent.
Ethical concerns: transparency and accountability
One of the most significant ethical challenges associated with AI in hiring is the lack of transparency and accountability.
Many AI systems operate as “black boxes,” making it difficult to understand how they arrive at their decisions. If an AI-driven system rejects a qualified candidate, it can be nearly impossible for recruiters or candidates to understand why. This lack of transparency erodes trust and raises serious concerns about accountability. This is especially pertinent when AI systems are used to make decisions that impact people’s careers and lives.
According to research published by Harvard Business Review, closing the trust gap in AI requires active human oversight. Businesses need to establish clear ethical guidelines for AI use, with a focus on transparency, fairness and accountability. Regular audits and bias checks are essential to ensuring that AI-driven hiring processes are inclusive and equitable.
Organizations must empower their employees to manage AI tools responsibly. This means providing ongoing training and creating an environment where human insight and AI work together – not in isolation.
Working with the right HR experts
Amid all the disruption and uncertainty, there’s one fact that’s clear: AI is not going anywhere. It will remain a crucial driver of business transformation and growth, particularly in hiring. However, companies must wield its power carefully, especially those with international operations and diverse workforces.
To effectively balance the use of AI while promoting a diverse and inclusive workplace, businesses must prioritize partnerships with HR experts who embody a people-first approach. These professionals provide invaluable insights into the ethical implications of AI. When implemented correctly, any technology should enhance, rather than undermine, efforts to create a diverse workforce.
As mentioned previously, human insight should remain central to decision-making processes. A people-first approach emphasizes not only diversity in hiring but also inclusion within everyday work environments, team dynamics, performance evaluations and promotions.
For instance, during terminations, over-reliance on AI can lead to decisions lacking the empathy and nuance essential for maintaining a supportive workplace culture. HR professionals can bridge this gap, guiding data-driven decisions with compassion to preserve the dignity and well-being of employees.
As organizations embrace AI, working with dedicated HR experts will not only enhance hiring processes but also reinforce a culture of inclusivity and respect. By prioritizing human connection alongside technological advancement, companies can truly harness the power of AI. At the same time, they can uphold their core values and pave the way for a brighter, more diverse future.
Contact us today to discover how our Recruit & Hire solution offers an inclusive, people-first approach to AI implementation.