As artificial intelligence (AI) continues to influence a range of business operations, its use in recruitment processes is becoming increasingly common. However, there are data protection implications to consider. The Information Commissioner’s Office (ICO) has recently released guidance to help organisations ensure their use of AI in recruitment aligns with existing data protection laws.

The background…

AI tools are increasingly being used to streamline hiring processes, from sourcing potential candidates to summarising CVs and scoring applicants. While these tools can significantly enhance efficiency, they also introduce new risks that could potentially harm jobseekers if not used lawfully and fairly.

ICO’s Audit Findings

The ICO recently conducted audits of several AI tool providers and developers in the recruitment industry. The results revealed considerable room for improvement in areas such as:

– Ensuring fair processing of personal information

– Minimising data collection and retention

– Clearly explaining to candidates how their information will be used by AI tools

As a result of these audits, the ICO made nearly 300 recommendations for providers and developers to improve their compliance with data protection law.

Key considerations for businesses

If your business is considering implementing AI tools in its recruitment process, the ICO advises asking the following key questions:

1. Have you completed a Data Protection Impact Assessment (DPIA)? A DPIA should be carried out prior to using an AI tool, ideally during the procurement stage.

2. What is your lawful basis for processing personal information? Identify an appropriate lawful basis, such as consent or legitimate interest.

3. Have you documented responsibilities and set clear processing instructions? Clearly define roles (controller and processor) and document instructions for the AI provider.

4. Have you checked the provider has mitigated bias? Ensure the AI tool processes personal information fairly and address any potential bias issues.

5. Is the AI tool being used transparently? Inform candidates about how the AI tool will process their personal information.

6. How will you limit unnecessary processing? Collect only the minimum amount of personal information required.

Implications for UK Businesses

The use of AI in recruitment provides both opportunities and challenges. While it can streamline processes and potentially reduce bias in hiring, it also introduces new risks related to data protection and fairness.

Businesses must ensure they’re not only complying with data protection laws but also maintaining ethical standards in their recruitment practices. This includes being transparent about the use of AI tools and providing candidates with the opportunity to challenge automated decisions.

Looking ahead…

As AI technology continues to evolve, it’s likely that its role in recruitment, as well as many other areas of business, will only grow. The ICO’s guidance serves as a crucial roadmap for businesses to use the new technology responsibly.

The ICO plans to deliver a webinar on 22^nd January 2025 for AI developers and recruiters to learn more about the audit findings and their practical application.

If you’re considering implementing AI tools in your recruitment process or have concerns about your current practices, we’d definitely recommend that you attend, or that you look for support from your HR advisor to ensure you’re complying with the guidance and are avoiding any future risks.

You can see the guidance in full here.