HR meets AI – When software invites you to a job interview
Especially in the area of recruiting, applications can be processed automatically using AI (so-called robot recruiting). AI-based applications can also be used to evaluate and analyse employee performance during the employment relationship. Essential work processes in human resources can be made efficient, resource-saving, and non-discriminatory through their use. Even if some managers are critical of this development, it will undoubtedly continue. Digitisation continues to advance, intelligent technology is constantly developing, and companies must implement new technologies in the area of human resources to remain competitive in the long term.
Of course, company professionals must comply with a number of regulations in their use of AI. The following article provides a brief overview of the key issues and current legal innovations.
To address the most important question first: Will AI replace our human resources managers?
The answer is: No! A human being will always have the final say. Thus, both the European General Data Protection Regulation (EU GDPR) and Germany’s Federal Data Protection Act (BDSG) stipulate that, as a rule, a person may not be subject to a decision based exclusively on automated processing (so-called profiling). This is based on the premise that decisions affecting personal rights should not only be made solely by software.
Data protection is always an issue!
Of course, employee data protection also plays an important role in the use of AI. The personal data of employees may only be processed if it is necessary for decisions on the establishment, implementation, or termination of employment relationships, or if employees have consented to the processing of their data (see Section 26 of the BDSG). However, if AI is used, for example, to analyse the behaviour or performance of employees for the purpose of their further development, employees could end up in a situation involving a form of total surveillance. This type of data collection is questionable under data protection law. Therefore, careful consideration must be given to the use of AI-based applications on a case-by-case basis.
Beware of discrimination!
Automated processes are assumed to make more unbiased and objective decisions than humans. However, the background algorithms or processes may be influenced by groupings based on a principle outlined in § 1 of the General Equal Treatment Act (AGG). Thus, discrimination can still occur in individual cases. The use of AI in the employment relationship should therefore be tested before its use.
Can the works council have a say in the use of AI?
Yes! The use of technical infrastructure in businesses has long been subject to co-determination if the infrastructure is intended to monitor the behaviour or performance of employees (see Section 87 (1) no. 6 of the Works Constitution Act (BetrVG). With the adoption of the Works Council Modernisation Act on June 18, 2021, legislation extended the co-determination rights of works councils to the use of AI in companies, among other things. The goal of Germany’s federal government was to bring the strengthening of workplace co-determination announced in its AI strategy "up to date". In the future, works councils will be allowed to call in an expert to assess AI results. In addition, the works council's co-determination rights apply to the planning of work processes and procedures even if these guidelines are created exclusively or with the support of AI. The same applies when determining guidelines on the selection of personnel.
Outlook
In the future, HR management will therefore not only control how the workforce is organised but also control the systems used to replace the humans. Through the use of AI, recurring tasks can be automated and thus made efficient and less resource intensive. The advantage of this, which should be emphasised in a positive way, is that it will free up time to deal with the individual needs of employees.
Do you have questions or want to know more?
This is a post from our newsletter "People in Business" 1-2021. The entire newsletter can be found here. You can also subscribe to this newsletter and receive the current issue directly on the release date.