The use of algorithmic software and automated decision systems (ADS) to make workforce decisions, including the most sophisticated type, artificial intelligence (AI), has surged in recent years. HR technology’s promise of increased productivity and efficiency, data-driven insights, and cost reduction is undeniably appealing to businesses striving to streamline operations such as hiring, promotions, performance evaluations, compensation reviews, or employment terminations. However, as companies increasingly rely on AI, algorithms, and automated decision-making tools (ADTs) to make high-stakes workforce decisions, they may unknowingly expose themselves to serious legal risks, particularly under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and numerous other federal, state, and local laws.
The Intersection of Artificial Intelligence and Employment Law
