AI in Hiring: Beyond Resumes and Interviews

AI is no longer just scanning resumes. Employers are using it for background checks, onboarding, and even monitoring early performance. But each new use case brings new risks.

Expanding AI in the hiring lifecycle

• Background checks: AI tools scan social media or online history to "score" candidates. This may introduce bias or privacy violations.
• Onboarding: Chatbots guide new hires through training or policy acknowledgments. Errors could create compliance gaps.
• Early performance monitoring: Some firms use AI to analyze keystrokes, call logs, or customer interactions from day one.

Risks for employers

1. Accuracy and fairness: An AI flagging a candidate incorrectly could be discriminatory. See our guide on AI hiring discrimination risks.
2. ADA accommodations: Automated tools may disadvantage applicants with disabilities unless alternatives are offered.
3. Transparency: If candidates don't know AI is being used, they may challenge the fairness of the process.

Insurance angle

Most Employment Practices Liability Insurance (EPLI) policies cover discrimination or wrongful hiring claims. But whether AI-specific issues (like algorithmic bias) fall under those terms is still untested. Employers should clarify coverage and consider endorsements where possible. Learn more about what's actually covered in cyber vs. AI liability policies.

Takeaway

AI in hiring goes far beyond resume scanning. Each added touchpoint increases liability. Employers should pair AI tools with human oversight, ensure compliance with EEOC guidance, and review insurance policies to confirm how AI-related claims are treated. Start by asking your insurer these five key questions about AI risk.