Should You Use AI in Interviewing? The Ethical + Legal Risks

Understanding AI in Hiring Interviews

Artificial intelligence (AI) is rapidly transforming nearly every aspect of the workplace—including how companies hire candidates. From resume screeners to video interview analyzers, AI tools promise efficiency, consistency, and scalability. But should you use AI in interviewing? Particularly when the legal and ethical lines can get blurry? Within the first few minutes of exploring AI-driven hiring, most companies discover a ticking clock: laws, potential bias, and privacy issues are looming overhead. AI in interviews is not just an HR upgrade; it's a responsibility. In this post, we’ll walk you through the benefits and landmines of AI interview tools—and what you need to know before diving in.

What is AI-Assisted Interviewing?

AI-assisted interviewing includes any use of artificial intelligence to evaluate or interact with candidates during the hiring process. For instance, software might analyze facial expressions during video interviews, interpret tone of voice, assess body language, or scan resumes for keywords. Even chatbots used for initial screening fall under this category. While these tools can streamline decision-making, their methods of interpretation often lack transparency. This raises critical questions. How do you validate fairness? Can you trust an algorithm to be free from bias? Understanding what these tools do—and how they do it—forms the foundation of responsible usage.

Why It's Gained Popularity

Speed and cost-saving are two huge motivators for companies embracing AI interviewing tools. When you have hundreds of applicants for a single position, manually reviewing each resume can feel like finding a needle in a haystack. AI can screen large volumes of applicants in seconds. It can rank them based on predefined criteria, helping recruiters focus on the most promising candidates first. But there’s a catch: AI can't fully understand human uniqueness. It might weed out fantastic applicants due to missing keywords or unorthodox career paths. Is efficiency worth that risk?

The Legal Minefield of AI in Hiring

Regulations Are Catching Up

Until recently, the legal frameworks governing hiring AI were sparse. But now, state and local governments are stepping up. In New York City, for instance, Local Law 144 mandates that employers using automated hiring tools conduct yearly bias audits and provide notice to candidates. Illinois has laws governing AI use in video interviews, and the EEOC has issued guidance on algorithmic fairness. These laws are only the beginning. Companies ignoring them could face lawsuits or public backlash. It's essential to research and comply with all local and federal guidelines before deploying AI tools.

What Counts as Discrimination?

One of the legal risks of using AI in interviews is the potential for algorithmic discrimination. Bias can seep into AI in subtle ways—especially if the training data reflects historical injustices or favors certain demographics. For example, if an algorithm rates video interviews more favorably when a candidate smiles frequently, non-Western cultures where such expressions are less common might be disadvantaged. Discrimination doesn’t require intent; it only requires disparate impact. Understanding that can change the questions you ask when procuring new hiring software.

Liability: Who’s Accountable?

When an AI tool makes a discriminatory decision, who is responsible—the employer or the software provider? According to most legal frameworks, the employer is ultimately liable, even if a third-party vendor supplies the AI. This is where vigilance pays off. Employers must ensure their providers can prove their software has been audited and validated for fairness. Demand documentation. Include legal compliance in contracts. Don’t assume a tool is legal or unbiased just because it’s widely adopted.

The Ethical Considerations

Transparency and Candidate Trust

Imagine attending an interview where your speech, posture, and micro-expressions are being evaluated by an algorithm—without your knowledge. Creepy, right? Transparency matters. Ethical AI use involves telling candidates when and how AI is being used and offering alternatives wherever possible. Not doing so doesn’t just impact compliance—it affects employer branding. Word spreads fast in candidate communities; being opaque can harm your reputation and deter top talent.

Bias Is Hard to Detect

Bias in AI tools is often invisible, lurking behind layers of complex algorithms. Even a solid developer might unintentionally embed bias if their training data is flawed. For instance, an AI interviewing tool trained mostly on white male candidates could rate similar applicants more favorably in the future. This is why diverse datasets, continuous testing, and human oversight are critical. Just because a system is “automated” doesn’t mean it’s fair. Fairness needs to be designed, tested, and enforced.

Replacing Human Judgment?

AI can assist with hiring, but can it replace human intuition and empathy? Not quite. While AI can triage candidates efficiently, it lacks context. Imagine a candidate who returned to work after caregiving or overcoming personal challenges—an AI might fail to factor in such nuances. Ethical hiring combines the best of machine precision with the depth of human understanding. Balance is key. Machines should inform decisions, not make them. When in doubt, let a human weigh in.

Setting Up Ethical AI Hiring Practices

Steps to Stay Compliant and Ethical

If you’re thinking about incorporating AI into your interviews, here’s a responsible way to start:

1. Audit Your Tools: Ask providers for fairness and bias audit reports.

2. Notify Candidates: Always disclose when AI is being used.

3. Offer Alternatives: Let candidates request human evaluation instead.

4. Train Your Team: Educate recruiters on AI ethics and bias.

5. Monitor Outcomes: Regularly review hiring data for disparate impacts.

Don’t wait for regulation to be your only motivator. Practicing ethical hiring is a reflection of what your company stands for. When you commit to fairness, you attract better talent and build a healthier culture.

Questions to Ask Before Using AI

Before signing off on a contract for AI hiring software, pause and ask:

• Has this tool been tested for bias across demographics?

• Can I access results from regulatory-compliant audits?

• What data does it collect, and how is that data stored?

• How are candidates informed of AI involvement?

• What oversight mechanisms are in place?

Asking these questions can be the difference between a smart innovation choice and a costly PR disaster. Seek clarity before you commit.

Frequently Asked Questions (FAQ)

1. Is using AI in hiring legal everywhere?

No, different states and countries have varying regulations. New York City, for example, requires audits and disclosure notices. Always check local laws before adopting AI tools.

2. Can AI eliminate human bias in interviews?

AI can reduce some forms of bias, but it can also introduce new biases if not properly designed and monitored. It’s a tool, not a total solution.

3. What are the biggest risks of using AI in interviews?

The largest risks include unintentional discrimination, regulatory non-compliance, and damaging candidate trust. Without transparency and human oversight, AI can create more problems than it solves.

In a world racing toward automation, it’s tempting to offload hiring decisions to machines. But people are more than data points, and hiring is still a deeply human process. As you explore this evolving landscape, remember: progress isn't only about speed—it’s about integrity. What steps will you take to ensure fairness and legal compliance as you integrate AI into your hiring process?