2 min read

The Coming Wave of AI Regulation for Human Resources

Artificial intelligence (AI) has become an integral part of various industries, revolutionizing the way organizations make decisions. However, with the rapid advancement of AI technology, concerns about its potential and ethical implications have emerged. As a result, governments around the world are preparing to enact regulations to address the use of AI in people decisions. In this blog post, we will explore the scope of these forthcoming regulations and discuss how People Data Cloud can help ensure equitable, ethical, and legally-compliant practices in automated decision-making across organizations.

Broad Scope of Regulations

While generative AI, such as ChatGPT, has been the catalyst for these regulations, it is important to note that the scope will not be limited to such technologies alone. Instead, the regulations are expected to encompass a wide range of automated decision technologies, including rule-based systems and rudimentary scoring methods. By extending the regulatory framework to cover diverse AI applications, governments aim to ensure fairness and transparency in all areas of decision-making.

Beyond Talent Acquisition

Although talent acquisition processes like interview selection and hiring criteria are likely to be subject to regulation, the scope of these regulations will go far beyond recruitment alone. Promotions, raises, relocations, terminations, and numerous other people decisions will also be included. Recognizing the potential impact of AI on employees' careers and well-being, governments seek to create an equitable and just environment across the entire employee lifecycle.

Focus on Eliminating Bias and Ensuring Ethical Practices

One of the primary objectives of these regulations will be to eliminate bias in AI-driven decision-making. Biases can arise from historical data, flawed algorithms, or inadequate training, leading to discriminatory outcomes. Governments will emphasize the need for organizations to proactively identify and mitigate biases, ensuring that decisions are based on merit and competence rather than factors such as race, gender, or age. Ethical considerations, including privacy and consent, will also be critical aspects of the regulatory landscape.

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A Holistic Approach to Compliance

To comply with forthcoming AI regulations, organizations must evaluate their entire people data ecosystem. This includes assessing where data resides, which technologies are involved in decision-making processes, the level of human review and transparency afforded, and the overall auditability of automated decisions. Achieving compliance will require robust systems that enable organizations to monitor and assess the fairness and transparency of their AI-driven decisions.

One AI is Your Automated People Decision Compliance Platform

As governments gear up to regulate AI in people decisions, organizations must be prepared to adapt and comply with the evolving legal landscape. The scope of these regulations will extend beyond generative AI and encompass a broad range of automated decision technologies. Moreover, regulations will address not only talent acquisition but also various aspects of employee decision-making. Emphasizing the elimination of bias and ethical practices, governments seek to create fair and equitable workplaces.

To ensure compliance with AI regulations, organizations can leverage platforms like One Model's One AI, which is fully embedded into every People Data Cloud product. This platform provides the necessary machine learning and predictive modeling capabilities, acting as a "clean room" to enable compliant and data-informed people decisions. By leveraging such tools, organizations can future-proof themselves against audits and demonstrate their commitment to ethical and unbiased decision-making in the AI era.

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