Artificial intelligence can make a range of business decisions and operations easier for you as an owner. However, because AI is still a relatively new tool for business owners across California, issues and questions can arise and present unexpected obstacles.
Challenges with hiring
One of the most common ways to use AI for your business is with recruiting and hiring employees. There are myriad AI programs and tools to make it easier to:
- Attract candidates
- Screen applications and resumes
- Contact applicants
- Predict the quality of a hire
- Analyze body language during interviews
- Tailor onboarding to improve engagement
While AI can streamline these processes and improve them for the purposes of hiring, there are limitations.
After all, AI is not perfect. And left unchecked or misused, AI tools could facilitate discriminatory hiring. Further, the programs you might be using may have been developed by third parties, leaving you with little or no insight into the technical details.
Thus, using AI could lead to claims of discrimination and threaten diversity and inclusion in your business.
Legal compliance issues
With AI playing an increasingly influential role in business operations, state and federal agencies are considering various regulations. California is among the states leading the way.
Earlier this year, the California Fair Employment and Housing Council proposed regulations that would prohibit the use of AI to discriminate against applicants and employees. Further, proposed measures would hold companies and other administrative parties liable for any discriminatory impact their AI tech has on employment.
Additionally, other jurisdictions require employers to disclose their use of AI tools to applicants and employees. Businesses in some states must also conduct independent audits of their AI programs.
What this can mean for your business
New technology can be a double-edged sword for your business. On the one hand, it can help you run your business more efficiently and effectively. On the other hand, advanced technologies can be confusing, and changing laws can regulate how and when you use them.
You can avoid legal and financial consequences of misuse or noncompliance by adopting new technologies thoughtfully and discussing any legal ramifications with an attorney.