How AI Hiring Tools Are Creating New Risks of Discrimination for Jobseekers and What Needs to Change

AI hiring tools in Australia risk discrimination against women, older candidates, and people with disabilities. Lack of transparency and digital barriers worsen fairness in recruitment.

Categorized in: AI News Human Resources
Published on: May 21, 2025
How AI Hiring Tools Are Creating New Risks of Discrimination for Jobseekers and What Needs to Change

AI in Hiring: A Hidden Risk of Discrimination

Artificial intelligence is changing how recruitment happens. In Australia, 62% of organizations report using AI moderately or extensively for hiring in 2024. These systems sort, rank, and score candidates based on various traits, influencing who advances in the hiring process.

But AI can introduce new risks of discrimination. It operates at a scale and speed that humans can't match, and many applicants don’t even realize AI is assessing them. Worse, these AI decisions are often opaque, making it hard to challenge unfair outcomes.

How AI Screening Can Discriminate

Research shows AI tools used for CV screening, assessments, and video interviews can unfairly disadvantage women, older candidates, people with disabilities, and those who speak English with an accent. Discrimination can creep in through biased data or flawed algorithms, or from how companies apply these tools.

For example, some AI systems aren’t accessible or validated for people with disabilities. One career coach shared how a neurodivergent client, despite being a top student, failed personality assessments because his unusual answers led to low scores. This blocked him from moving forward.

Transparency Issues Hurt Candidates

Many candidates face unclear or unrealistic time limits during AI assessments. One coach noted that candidates were cut off mid-answer because they didn’t know the time constraints. Lack of transparency leaves job seekers, especially those with disabilities, unable to advocate for themselves.

New Barriers to Job Access

AI hiring tools demand reliable internet, a smartphone, and digital skills. This raises new hurdles for some applicants, who might skip applying or drop out during the process because of these requirements.

Current Legal Protections and Their Limits

Existing anti-discrimination laws apply to AI hiring but have gaps. These laws should shift the burden of proof onto employers to show their AI systems are fair. At present, job seekers must prove discrimination, which is tough when AI operations are complex and hidden.

Privacy laws should also guarantee candidates the right to an explanation when AI influences hiring decisions. The Australian government plans to introduce mandatory rules for "high risk" AI uses, like recruitment. These should include requirements for representative training data, accessibility for people with disabilities, and independent audits.

Employers need clear guidelines on using AI responsibly in hiring to comply with these regulations.

Should AI Hiring Systems Be Banned?

Some call for banning AI in employment decisions without human oversight. The House of Representatives Standing Committee recommended this in its Future of Work report. Such a ban could be sensible until safeguards are in place and the impact on workplace equality is clearer.

As one participant put it: “The world is biased, and coding those biases risks shutting out entire groups from opportunities.”

What HR Professionals Can Do Now

  • Question the fairness and accessibility of AI tools your organization uses.
  • Advocate for transparency in AI hiring processes.
  • Support inclusive training data and regular audits of AI systems.
  • Stay informed about upcoming regulations affecting AI in recruitment.
  • Consider human oversight essential in AI-driven hiring decisions.

For those interested in learning how AI can be integrated effectively and ethically in HR, explore practical courses on Complete AI Training.


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