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Regulatory Compliance in the Use of Artificial Intelligence and Big Data in Selection Processes

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In a world of work where technology constantly redefines the rules of the game, artificial intelligence (AI) and Big Data are transforming recruitment processes. These tools promise efficiency, accuracy, and the reduction of human bias; however, they also bring with them ethical and legal risks that HR professionals cannot ignore.

In Spain and Europe, the use of these technologies must be governed by a rigorous regulatory compliance framework that guarantees respect for the rights of candidates, especially with regard to their privacy and data protection. This article analyzes the main associated risks, key regulations, and best practices for aligning innovation with legal compliance.

Will you join us to discover them?

The risks of technology in personnel selection

While AI and Big Data are powerful tools, their implementation in HR presents critical challenges:

  1. Algorithmic discrimination
    Algorithms designed using historical data can reproduce biases present in human decisions. For example, if a model is trained with data that prioritizes specific gender or ethnic profiles, it could perpetuate these inequalities.
  2. Lack of transparency
    Decisions made by algorithms, especially in machine learning models, can be opaque even to their developers. This makes it difficult for candidates to understand why they were rejected or selected.
  3. Invasion of privacy
    Many recruitment tools collect sensitive data, from employment history to biometric information. If not managed properly, the use of this data can violate individuals' right to privacy.
  4. Insufficient regulatory compliance
    Not all companies are prepared to implement AI and Big Data-based recruitment processes in compliance with applicable laws. This can result in financial and reputational penalties.

The regulatory compliance framework in Spain and Europe

In the Spanish context, two key regulations set the tone for the ethical and legal use of these technologies in personnel selection:

  1. General Data Protection Regulation (GDPR)
    This European Union regulation governs the processing of personal data, establishing principles such as data minimization, transparency, and explicit consent. Any AI or Big Data system that processes personal data must comply with these guidelines.
  2. Organic Law on Data Protection and Guarantee of Digital Rights (LOPDGDD)
    The LOPDGDD strengthens the GDPR in Spain and introduces aspects such as digital rights in the workplace. This includes the right of workers not to be evaluated exclusively through automated processes that significantly affect their rights.

Furthermore, in 2021 the European Commission presented a proposal for a Regulation Artificial intelligence, which classifies the use of AI in personnel selection as "high risk." This regulation, still in development, could impose additional requirements regarding transparency, audits, and control of bias in algorithms. The specific guidelines of this regulation are yet to be determined, but if we imagine what it could regulate, it could include measures such as mandatory independent audits of the algorithms, the requirement of a explicit and granular consent for the use of sensitive data, and the incorporation of clear mechanisms for explaining automated decisions to candidates. Controls are also likely to be strengthened to ensure that critical decisions, such as hiring or rejecting a person, are not left solely to automated systems, and that there is significant human oversight at these stages.

These measures would be crucial to ensuring a balance between technological innovation and the protection of fundamental rights, promoting more ethical, inclusive, and privacy-respecting selection processes.

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Best practices for responsible use of AI and big data

To minimize risks and ensure regulatory compliance, organizations must take proactive measures:

  • Audit algorithms periodically to detect and correct biases.
  • Implement robust privacy policies, ensuring that candidates understand how their data is used and for what purpose.
  • Ensure human intervention in critical decisions, avoiding completely automated evaluations.
  • Train those responsible for HR. HH. in the ethical use of these technologies and in the applicable legal framework.
  • Select reliable technology providers, which offer tools aligned with current regulations.

Moving towards a more ethical and transparent selection

Artificial intelligence and Big Data are not enemies of candidates' rights, as long as they are used responsibly and in compliance with regulations. Organizations that commit to ethical implementation will gain the trust of candidates and society at large, positioning themselves as leading companies and participating in meetings with leading companies on best practices.

Adopting an ethical and regulated approach to the use of these technologies is not an option; it's imperative for those who wish to lead the digital transformation in Human Resources.

Sources consulted

Proposed EU Artificial Intelligence Regulation: https://eur-lex.europa.eu/legal-content/ES/TXT/?uri=CELEX:52021PC0206

If you are interested in training and developing professionally in the field of human resources, you can find out about our Master in HR: People Management, Talent Development and Labor Management.

Nestor Cruz del Rosario

Labor advisor at Asinte International Advisory Office

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EIP International Business School informs you that the data in this form will be processed by Mainjobs Internacional Educativa y Tecnológica, SAU as the party responsible for this website. The purpose of collecting and processing personal data is to manage your subscription to the newsletter as well as to send commercial information about the services of the data controller. The legitimacy is the explicit consent of the interested party. Data will not be transferred to third parties, except under legal obligation. You may exercise your rights of access, rectification, limitation and deletion of data at compliance@grupomainjobs.com, as well as the right to lodge a complaint with the supervisory authority. You can consult additional and detailed information on Data Protection in the Privacy Policy that you will find on our website.