For decades, companies have harnessed the power of artificial intelligence (AI) in various business applications. However, the more recent utilization of AI tools in employment decisions has intensified, igniting concerns about bias and discrimination against job applicants and employees.

Since decisions made by AI are only as good as the algorithms and data they rely on, decision-making may be influenced by biases inherent in the algorithms and data used to generate the results. Sometimes this results in disparate or adverse impacts on protected groups.

The Equal Employment Opportunity Commission forbids employment practices that have a disparate impact on protected classes of workers. It recently issued a technical assistance document specifying that the use of AI tools for employment decisions is considered a selection procedure and that an adverse impact on a protected class caused using an AI tool is a violation of Title VII of the Civil Rights Act, which prohibits employment discrimination.