How artificial intelligence can make hiring bias worse

NerdWallet: How artificial intelligence can make hiring bias worse
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4 mn read

As we transition to a world where more and more of our everyday decisions are made by artificial intelligence (AI), a troubling possibility is emerging: AI could be making hiring bias even worse. Although AI is touted as a way to improve efficiency and reduce errors, a recent study from NerdWallet suggests that unless businesses take steps to ensure its accuracy, AI could actually magnify existing inequalities and uneven access to certain types of opportunities. Let’s take a closer look at the findings of the NerdWallet study to understand how AI could be potentially making hiring bias worse.

Table of Contents

1. Uncovering the Unexpected Dangers of AI-Driven Hiring

As the demand for artificial intelligence (AI) increases, so too do the risks associated with its adoption when it comes to hiring practices. AI-driven hiring has the potential to improve recruitment and selection processes, but there are certain dangers to keep in mind. Here are some potential pitfalls to consider:

  • Unrealistic Expectations: Artificial intelligence can only work based on the data it is given. If the data given is incomplete or faulty, a faulty bias can be established in the program. This can lead to an over-emphasis on certain criteria, overlooking other skills and potential contributions.
  • Long-Term Employment Decisions: AI-based solutions are programmed to look for a particular type of candidate. While this can speed up the hiring process, it also has the potential to lead to hiring a candidate who isn’t necessarily the best fit for the long-term.
  • Job Market Disruption: Unfortunately, AI-driven programs lack the nuance and understanding of a human to account for the big picture when evaluating a candidate. This can lead to disruption of the job market, where qualified candidates are overlooked while AI algorithms have their blind spots.

The risks associated with AI-driven hiring must be addressed before businesses can reap the full benefits of this new technology. Employers need to ensure they have comprehensive data sets and safeguards in place to eliminate any risks of unfair selection criteria. Additionally, a human layer in the decision-making process is important in order to ensure full consideration of a candidate’s potential.

2. Examining How AI Can Augment Biased Perception

It’s no secret that humans are influenced by perception bias, which results in decisions that may not reflect the facts. But, artificial intelligence (AI) can help augment biased perception by providing new points-of-view and data-driven insights, allowing for more comprehensive judgments. Here’s how:

  • Re-examining Prejudices: AI can re-examine old information to look for hidden biases and provide input that could shift opinion. Algorithms can detect and identify patterns that humans may miss due to preconceived notions and break free from this learned thinking.
  • Unbiased Analysis: AI can reach beyond personal bias and provide a dispassionate processing of data, using sources outside of human cognition. AI can help fill in the gaps in perception by uncovering facts not easily attained by people and cross-examining information for accuracy.

The ability of AI to expand and re-evaluate viewpoint can be used to reassess the validity of human judgement, leading to more considered, open-minded decision making, and less prejudice-based on opinion.

3. The Need for Human Involvement in the Hiring Process

The importance of human involvement in the hiring process cannot be overestimated. In a world replete with automation, the human factor is often forgotten. But when it comes to making critical decisions such as selecting the right person for the job, nothing can truly match the insight and insight provided by experienced human beings.

first and foremost, people assess the softer skills – the intangibles – of a potential candidate that cannot be measured or quantified. Things like creativity, charisma, energy, and outlook, all contribute to a person’s ability to perform in a given role.

  • The human touch.The human touch is invaluable. Face-to-face interaction and conversations provide invaluable insight into the person as a whole.
  • Team fit and dynamics. In the context of team dynamics, it becomes essential to assess the impact an additional team member is likely to have. Will the team gel?
  • Uncovering hidden talents. People have unique talents and abilities that cannot be unearthed via a form or an automated process. The human interviewing process can reveal potential well beyond what a simple form can.

4. Solutions for Achieving Fair and Equitable Hiring with AI

Employers can no longer rely solely on intuition to achieve fair and equitable hiring. AI technology offers an invaluable tool to promote fairness and equity in the hiring process. Here are four simple steps employers can take to maximize the potential of AI and increase their chance of a successful hiring opportunity.

  • Decide on specific criteria: AI-assisted hiring is only as useful as the parameters taken into account. Outlining potential applicant qualifications are key to eliminating bias from the equation.
  • Update job profiles: By providing AI hiring systems the latest details in job skills and qualifications, employers can ensure that applicants are evaluated on the most appropriate data.

Finally, employers using AI must be mindful that the technology is only a tool, and any reliance on AI systems must be accompanied by a proactive approach to job postings, applicant outreach, and other human resources practices. With the right combination of technology and human touch, employers can achieve fair and equitable hiring with AI.

Q&A

Q: What is NerdWallet?

A: NerdWallet is a personal finance company that uses technology to provide consumers with financial guidance.

Q: What is the danger of using artificial intelligence for hiring?

A: Artificial intelligence (AI) can often entrench existing biases in a hiring process if it is not programmed with the correct data. AI-based hiring decisions can lead to unintended discrimination if the system is not rigorously checked for potential biases.

Q: What can companies do to prevent artificial intelligence from exacerbating hiring bias?

A: Companies should be mindful of potential risks with AI and use tools like algorithmic bias analysis to identify potential sources of bias. Additionally, organizations should strive to create a diverse workforce and prioritize diversity and inclusion in their hiring processes.

We hope this article has shed some light on the potential impact of artificial intelligence in recruitment, and how it can potentially create more bias in hiring. As the Head of Talent Acquisition at NerdWallet noted, “Our mission is not only to save consumers money but also to bring fairness to the hiring process.” It is up to us as employers to ensure that we account for the ways in which AI can introduce bias and develop better hiring strategies. Then, and only then, can we truly enhance the recruitment process and create equitable opportunities for all job seekers.


Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone

The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.


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