Digital Transformation Through Agile Delivery
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Digital Transformation Through Agile Delivery
IT Agility AbilityTM

Thinking of Using AI in Recruitment? 5 Key Data Protection Considerations

By . February 4, 2025

Artificial Intelligence (AI) is transforming recruitment by streamlining candidate searches, automating CV screening, and assessing applicants. However, if not used correctly, AI can introduce risks such as unfair bias and breaches of data protection laws. The UK’s Information Commissioner’s Office (ICO) has provided essential guidance for organisations considering AI-powered recruitment solutions.

Following audits of AI recruitment tool providers, the ICO identified areas for improvement, including ensuring fairness, minimising data collection, and being transparent about data usage. Almost 300 recommendations were made to enhance compliance, all of which have been accepted or partially accepted by those audited.

To help organisations make informed decisions, the ICO has outlined key questions to consider before implementing AI recruitment tools.

Have You Completed a Data Protection Impact Assessment (DPIA)?

A DPIA should be conducted at the procurement stage to identify and mitigate privacy risks. As processing activities evolve, the assessment should be regularly updated to maintain compliance with data protection laws.

What Is Your Lawful Basis for Processing Personal Information?

Organisations must establish a lawful basis for processing candidates’ data, such as legitimate interests or consent. Special category data, such as information on health or ethnicity, requires meeting additional legal conditions.

Have You Defined Responsibilities and Provided Clear Instructions?

Clarifying whether your organisation or the AI provider is the data controller or processor is crucial. Contracts should define roles and responsibilities, ensuring processors follow explicit instructions. Setting performance measures, including accuracy and bias mitigation, helps maintain accountability.

Has the AI Provider Taken Steps to Mitigate Bias?

AI must process data fairly and without discrimination. Organisations should check how providers mitigate bias, monitor outputs for inaccuracies, and request documentation demonstrating fairness measures.

Are You Being Transparent with Candidates?

Jobseekers should understand how AI impacts their application. Organisations must provide clear privacy information, explaining how decisions are made and offering ways to challenge automated outcomes.

By addressing these considerations, organisations can harness AI’s potential while safeguarding fairness and compliance with data protection laws.

 

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