CASE STUDY
Please use the following to answer the next question:
A premier payroll services company that employs thousands of people globally, is embarking on a new hiring campaign and wants to implement policies and procedures to identify and retain the best talent. The new talent will help the company's product team expand its payroll offerings to companies in the healthcare and transportation sectors, including in Asia.
It has become time consuming and expensive for HR to review all resumes, and they are concerned that human reviewers might be susceptible to bias.
To address these concerns, the company is considering using a third-party AI tool to screen resumes and assist with hiring. They have been talking to several vendors about possibly obtaining a third-party AI-enabled hiring solution, as long as it would achieve its goals and comply with all applicable laws.
The organization has a large procurement team that is responsible for the contracting of technology solutions. One of the procurement team's goals is to reduce costs, and it often prefers lower-cost solutions. Others within the company deploy technology solutions into the organization's operations in a responsible, cost-effective manner.
The organization is aware of the risks presented by AI hiring tools and wants to mitigate them. It also questions how best to organize and train its existing personnel to use the AI hiring tool responsibly. Their concerns are heightened by the fact that relevant laws vary across jurisdictions and continue to change.
Which of the following measures should the company adopt to best mitigate its risk of reputational harm from using the AI tool?
- Test the AI tool pre- and post-deployment.
- Ensure the vendor provides indemnification for the AI tool.
- Require the procurement and deployment teams to agree upon the AI tool.
- Continue to require the company's hiring personnel to manually screen all applicants.
Answer(s): A
Explanation:
Testing the AI tool before and after deployment helps identify biases and errors early, reducing the risk of reputational harm by ensuring the system performs fairly and reliably.
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