Do the benefits of AI-based technologies outweigh the risk for employers?
Nearly one-quarter of survey respondents said their organization does not assess the risk of AI-driven HR tools at all.
Employers are increasingly using AI-based technologies in the workplace – many with little regard for the risks – a new study conducted by Littler, a U.S.-based law firm, found.
As AI-based technologies rapidly evolve, the policies and regulation that will shape them lag far behind. Only 37% of survey respondents said that they provide employees with policies or guidelines surrounding the proper use of AI tools. Additionally, just 45% of survey respondents said that they limit the use of AI to pre-approved tools and uses.
The use of AI comes with a high level of risk, such as potential for unintended bias or noncompliance issues. Despite the high level of risk associated with AI-based technology, nearly 60% of companies rely solely on internal assessments to evaluate risk levels. Nearly one quarter of survey respondents said that their organizations do not assess the risk of AI-driven HR tools at all.
While New York City is currently the only jurisdiction with regulations on the use of AI in employment-related situations, many other regions will likely be quick to follow. The study found that most survey respondents believe California will have the greatest impact on the regulation of AI in the future.
Even though states such as California, Illinois, New York, New Jersey and Washington have proposed or enacted legislation surrounding the use of AI in HR practices – only 10% of survey respondents halted, or decreased AI usage as a result, the study found.
According to the study, the benefits of AI-based technologies are so appealing that many organizations are willing to expose themselves to a certain level of risk and uncertainty in using them.
Related: Employees and HR agree: AI increases productivity
Many employees experience the benefits of AI tools firsthand. The study found that 82% of survey respondents saw at least some benefit of using AI in HR with nearly 60% agreeing that the use of AI reduces workload.
As HR and IT departments are exposed to the growing availability and usage of AI-based technology, they will face the challenge of adapting regulations to fit their organizations’ needs.