In her HRDive article, As major firms green-light AI for performance reviews, should others follow suit?, Contributing Writer Jen A. Miller writes that artificial intelligence promises efficiency and data-driven insights. She notes that while companies increasingly adopt AI technology to streamline employee review processes, employers would do well to proceed with caution.
That’s the focus of her conversation with CM Law’s Corporate and Business Services Chair Peter Cassat, which ultimately lands squarely on the adage that “for AI to work, it has to be used well. But,” she notes, “that is not always the case.”
There are “serious legal and compliance questions that HR leaders cannot afford to ignore,” Peter tells Jen. “While AI promises efficiency and data-driven insights, its use in evaluating employees could subject organizations to discrimination claims as well as substantial compliance obligations.”
The article further reports that many of the largest institutions are already using AI to streamline what is a painstaking process. However, Peter notes there are also “serious legal and compliance questions that HR leaders cannot afford to ignore,” including “its use in evaluating employees [which] could subject organizations to discrimination claims as well as substantial compliance obligations.”
Exposures can include Title VII, ADA, and Age Discrimination in the Workplace Act Claims, as well as data privacy concerns. Even “neutral” algorithms can create disparate impact if they disadvantage protected groups,” he says. And AI tools from a third-party vendor will not protect an employer from liability.
If you would like to read the entire article, please click here. To contact Peter directly with your questions about AI and Employee Performance Reviews, or any other business or employment law matter, please email him at pcassat@cm.law.
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