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9 April 2024
The use of artificial intelligence (AI) is still a relatively new technical phenomenon but it is already having a fundamental impact on all areas of economic life. This also applies to human resources (HR) – where various companies are already using AI. This is part 13 of our AI blog series.
AI is already having a certain impact in HR and can change the way HR experts organize their work. It is conceivable that AI could be used in the following areas in particular:
Recruiting and talent acquisition:
Personnel development and training:
Employee commitment and retention:
Performance Management:
Management of employee data:
The use of AI in human resources (HR) offers a number of advantages:
Increased efficiency:
Better basis for decision making:
Personalisation:
Objectivity and equal treatment
Talent acquisition and retention:
Time saving:
Improved employee experience:
Performance management:
Overall, the use of AI can help make HR departments more effective and data-driven, which can ultimately lead to a better working environment for everyone.
The use of AI in HR entails a number of risks and potential disadvantages, including the following:
Human alienation and lack of transparency:
Bias and discrimination:
Privacy and security:
Lack of human intuition:
Technical errors or system failures:
Resistance to change:
Costs and Effort required for implementation:
It is important to take these disadvantages into account and to carefully plan the use of AI in HR and implement transparent, data protection-compliant processes in order to make the most of the benefits while minimising potential risks.
Legal Framework
Although the widespread use of AI is a relatively recent phenomenon, the use of AI is already subject to legal requirements, especially in the HR sector (For further information: Part 3: AI: 11 principles – and an AI policy for employees - Vischer ). Data protection in particular plays a decisive role in the use of artificial intelligence - data protection law is applicable to AI-supported processing of personal data (on data protection in the HR context, see also here: New Data Protection Act: What do I need to know as an HR manager? - Vischer ). Here are some important aspects:
Information:
Transparency:
Automated decisions:
Data protection impact assessment:
Data security:
Rights of data subjects:
Avoidance of discrimination:
To summarise, data protection in HR is crucial to ensure fair, transparent and privacy-compliant processes.
In addition to data protection law, the EU AI Regulation (AI Act) could also have an impact on Switzerland. The AI Act is applicable if an AI system is deployed within the EU or its output is "used" in the EU. This applies, for example, if a forecast, recommendation or decision made by an AI-based system in Switzerland is "used" within the EU. Systems that are used to assess employees and applicants are normally considered "high-risk" AI systems and are therefore subject to additional requirements. Under the AI Act, for example, it is not possible to simply screen applicants. In this case, however, many Swiss companies do not use the output in the EU. Further information on the AI Act can be found here: Part 7: The EU AI Act - what it means in practice for most companies - Vischer
In Switzerland, the Federal Administration is currently evaluating various approaches for the regulation of AI through to the end of 2024. The Federal Council will then decide on these and, if necessary, issue a corresponding regulatory mandate.
Marc Prinz
This article is part of a series on the responsible use of AI in companies:
We support you with all legal and ethical issues relating to the use of artificial intelligence. We don't just talk about AI, we also use it ourselves. You can find more of our resources and publications on this topic here.
Categories: Employment Law, Data & Privacy
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