It is one of the biggest conundrums of our time: businesses posting record numbers of available jobs and not being able to fill them. As with most intractable problems, there are multiple forces at play, with one involving the role of technology. Kathryn Dill at the Wall Street Journal recently wrote (paywall): “Companies are desperate to hire, and yet some workers still can’t seem to find jobs. Here may be one reason why: The software that sorts through applicants deletes millions of people from consideration.”

This sorting software uses artificial intelligence (AI), a technology widely known but not so widely understood. The use of AI and machine learning in various employment processes is advancing rapidly. New products and services are entering the market at an explosive pace. These new technologies promise dramatic efficiencies and added value while pledging a healthy return on investment.

A challenge for rapid innovation in any industry is the ability for legal and regulatory requirements to keep pace. In the recruiting and hiring process, where AI provides aid to human decision-making and a welcome relief to managing a deluge of data, company leaders are asking themselves: How can we combine important technological innovation with a proactive approach to employment law requirements?

The need for this approach is not merely a box-checking exercise. A Harvard Business School study found that 88% of employers believe qualified applicants were filtered out by the screening software. And beyond missing out on good candidates, using this type of software also exposes companies to potential legal trouble in the form of discrimination lawsuits. The Federal Trade Commission (FTC) noted that this "apparently ‘neutral’ technology can produce troubling outcomes — including discrimination by race or other legally protected classes.”

Read the full article about artificial intelligence for hiring by Eric Reicin at Forbes.