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Cooper is a professor of law at California Western School of Law and a research fellow at Singapore University of Social Sciences. He lives in San Diego. Kompella is CEO of industry analyst firm RPA2AI Research and visiting professor for artificial intelligence at the BITS School of Management, Mumbai, and lives in Bangalore, India.

Hiring is the lifeblood of the economy. In 2022, there were 77 million hires in the United States, according to the U.S. Department of Labor. Artificial intelligence is expected to make this hiring process more efficient and more equitable. Despite such lofty goals, there are valid concerns that using AI can lead to discrimination. Meanwhile, the use of AI in the hiring process is widespread and growing by leaps and bounds.

A Society of Human Resources Management survey last year showed that about 80 percent of employers use AI for hiring. And there is good reason for the assist: Hiring is a high-stakes decision for the individual involved and the businesses looking to employ talent. It is no secret, though, that the hiring process can be inefficient and subject to human biases.

AI offers many potential benefits. Consider that human resources teams spend only 7 seconds skimming a resume, a document which is itself a one-dimensional portrait of a candidate. Recruiters instead end up spending more of their time on routine tasks like scheduling interviews. By using AI to automate such routine tasks, human resources teams can spend more quality time on assessing candidates. AI tools can also use a wider range of data points about candidates that can result in a more holistic assessment and lead to a better match. Research shows that the overly masculine language used in job descriptions puts off women from applying. AI can be used to create job descriptions and ads that are more inclusive.

But using AI for hiring decisions can also lead to discrimination. A majority of recruiters in the 2022 Society of Human Resources Management survey identified flaws in their AI systems. For example, they excluded qualified applicants or had a lack of transparency around the way in which the algorithms work. There is also disparate impact (also known as unintentional discrimination) to consider. According to University of Southern California research in 2021, job advertisements are not shown to women despite them being qualified for the roles being advertised. Also, advertisements for high-paying jobs are often hidden from women. Many states suffer a gender pay gap. When the advertisements themselves are invisible, the pay equity gap is likely not going to solve itself, even with the use of artificial intelligence.

Discrimination, even in light of new technologies, is still discrimination. New York City has fashioned a response by enacting Local Law 144, scheduled to come into effect on July 15. This law requires employers to provide notice to applicants when AI is being used to assess their candidacy. AI systems are subject to annual independent third-party audits and audit results must be displayed publicly. Independent audits of such high-stakes AI usage is a welcome move by New York City.

California, long considered a technology bellwether, has been off to a slow start. The California Workplace Technology Accountability Act, a bill that focused on employee data privacy, is now dead. On the anvil are updates to Chapter 5 (Discrimination in Employment) of the California Fair Employment and Housing Act. Initiated a year ago by the Fair Employment and Housing Council (now called the Civil Rights Department), these remain a work in progress. These are not new regulations per se but an update of existing anti-discrimination provisions. The proposed draft is open for public comments but there is no implementation timeline yet. The guidance for compliance, the veritable dos and donts, including penalties for violations, are all awaited. There is also a recently introduced bill in the California Legislature that seeks to regulate the use of AI in business, including education, health care, housing and utilities, in addition to employment.

The issue is gaining attention globally. Among state laws on AI in hiring is one in Illinois that regulates AI tools used for video interviews. At the federal level, the Equal Employment Opportunity Commission has updated guidance on employer responsibilities. And internationally, the European Unions upcoming Artificial Intelligence Act classifies such AI as high-risk and prescribes stringent usage rules.

Adoption of AI can help counterbalance human biases and reduce discrimination in hiring. But the AI tools used must be transparent, explainable and fair. It is not easy to devise regulations for emerging technologies, particularly for a fast-moving one like artificial intelligence. Regulations need to prevent harm but not stifle innovation. Clear regulation coupled with education, guidance and practical pathways to compliance strikes that balance.

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Opinion: Artificial intelligence is the future of hiring - The San Diego Union-Tribune