How to Use AI In Hiring
By VICKY BROWN
AI is already changing the way we hire. From smart resume scanners to automated interview scoring and job ad targeting, artificial intelligence is everywhere – and it’s not going away anytime soon. But while these tools can save you time, they can also open the door to serious legal and ethical risks if you’re not paying attention.
That’s especially true for small business owners. You may not have an HR department or a legal team, but if you’re using AI in your hiring process – even through a job board or scheduling platform – you are still responsible for what happens.
What Counts as AI in Hiring?
Let’s start by getting clear about what we mean when we talk about AI in hiring. If your software is doing any of the following, you’re already using AI:
- Scanning and scoring resumes
- Writing or optimizing job descriptions
- Screening candidates via chatbot or video
- Recommending candidates to interview
- Targeting ads to specific candidate profiles
These tools often run in the background, quietly shaping your applicant pool. But they’re not just passive helpers. Many are “learning” from the data they process – which means they could be reinforcing patterns that exclude qualified candidates.
The Hidden Risks: Bias, Blind Spots, and Compliance
Here’s where it gets tricky. AI systems are only as good as the data they’re trained on. And that data often reflects human bias. So if your past hires tend to come from a particular background or school, your AI tool might start ranking similar profiles higher – and filtering out everyone else.
That’s not innovation. That’s algorithmic bias. And it’s a real problem.
The Equal Employment Opportunity Commission (EEOC) is already issuing guidance on AI in hiring. States like California, New York, and Illinois are putting laws in place that require transparency, documentation, and accountability. For example, starting in October 2025, California employers using “automated decision systems” will need to provide notice to applicants and maintain detailed records of how those systems work.
If you’re not ahead of this, you could be exposed to discrimination claims or compliance violations – even if you thought the tech was taking care of everything.
“…Tools that claim to find the “best fit” candidates often use criteria that mirror past hiring data“
Where Small Business Owners Get Tripped Up
There are three key areas where AI tends to cause problems:
- Resume Screening:
Tools that claim to find the “best fit” candidates often use criteria that mirror past hiring data. If your past hires all had similar educational backgrounds or job titles, the system may filter for more of the same – and weed out great candidates who look different on paper. - Automated Interviews or Video Analysis:
Some platforms analyze tone, facial expressions, or word choice. But how does the system account for different speech patterns, cultural expressions, or neurodiversity? If the answer is “it doesn’t,” that’s a red flag. - Job Ad Targeting:
AI may optimize who sees your job post – but it can do that by narrowing the audience in ways you didn’t approve. If the algorithm only shows your job to certain age groups, zip codes, or browsing behaviors, you might be discriminating without realizing it.
What You’re Responsible For (Hint: Everything)
Using AI doesn’t let you off the hook. If a candidate is unfairly screened out – even by a third-party tool – you are still legally responsible. That means you need to:
- Understand how your tools work
- Ask vendors for documentation
- Be transparent with candidates
- Keep records of how and why decisions were made
- Make sure humans make final hiring calls – not machines
Whether you’re an entrepreneur jumping into a leadership role, a seasoned business pro with new HR responsibilities, or just starting your HR career – we’ve got the right path to guide you through your HR hurdles.
Check out the Leaders Journey Experience. This online education platform holds the LJE Masterclass, HR SimpleStart Academy and HR FuturePro Academy.
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How to Use AI Responsibly
AI can be incredibly helpful when used wisely. It can organize applications, streamline scheduling, and surface patterns you might miss. But it should never be the final decision-maker.
Instead, pair AI with structured interviews and consistent scoring systems. Ask real questions about how your hiring tools operate – and walk away from vendors who can’t explain themselves clearly. And don’t forget to disclose your use of AI in hiring, especially if your state requires it.
Most importantly, don’t fall into the trap of thinking the software will solve your hiring problems for you. It won’t.
Build a Process You Can Stand Behind
At the end of the day, hiring is still a leadership function. The tools are just that – tools. You still need to bring your judgment, your values, and your accountability to the process.
Because hiring isn’t just about filling a role. It’s about building a team. And that means building a process that reflects the kind of business you want to run – fair, thoughtful, and responsible.
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