AI in recruitment: importance of fairness and transparency

The growing use of artificial intelligence (AI) in recruitment is drawing attention to the need for fair, transparent and responsible hiring practices, according to a report by the Association of Chartered Certified Accountants (ACCA).

The professional accountancy body said its survey found that 52 per cent of respondents in India expressed confidence in the use of AI algorithms in hiring processes. This compares with 43 per cent globally. At the leadership level, 40 per cent of respondents in India said they trusted the use of AI when selecting candidates.

The survey also showed differences across age groups. Among respondents in India, 54 per cent of Gen Z participants expressed confidence that AI could support fair and unbiased hiring. Among Gen Y respondents, the figure was 48 per cent, while 27 per cent of Gen X respondents expressed similar confidence.

According to ACCA, AI-based recruitment tools can help organisations manage large numbers of applications by assisting with tasks such as screening and sorting candidates. However, the organisation highlighted the importance of human involvement throughout the recruitment process.

Sajid Khan, Director – India at ACCA, said AI can support recruitment by helping organisations handle large applicant pools, but human oversight remains important. He also noted that AI systems can reflect biases present in the data or processes used to develop them.Another consideration is the ability of automated systems to understand individual career circumstances. Career breaks, changes in employment and different paths of professional development can have personal and contextual reasons that may not be fully captured by automated systems.

The report also identified concerns about reduced human interaction in recruitment, including limited personal feedback for applicants and greater reliance on automated communication.

ACCA said there is increasing interest in establishing appropriate governance for AI technologies used in recruitment. This includes monitoring and auditing AI systems, reviewing their outcomes and strengthening relevant regulatory requirements.

As AI becomes more common in recruitment, organisations can consider combining technological tools with human review, clear processes and appropriate oversight to help ensure that hiring decisions remain transparent and accountable.

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The Hans India