Navigating the Use of Artificial Intelligence in Recruitment

AI Tools in the Recruitment Context

To use AI effectively in recruitment, it is important to understand where these tools are most commonly applied.  From sourcing candidates to automating interview tasks, AI is playing a bigger role in hiring each day, including in the following scenarios:

a) Talent Sourcing

AI-powered talent sourcing tools are changing the way organizations identify and attract top talent. With the help of smart algorithms and machine learning, these tools can quickly scan vast databases, social media platforms, and professional networks, zeroing in on candidates whose skills and experience closely match job requirements. Some of the tools can even take it one step further, crafting customized outreach messages to top prospects. Tools like Fetcher and SeekOut are leading the way in this space.

b) Screening and Assessment

Many organizations are beginning to use AI tools to screen and assess candidates during the initial stages of recruitment. Certain tools manage initial candidate touchpoints, such as screening interviews (see Ribbon, for example), while others analyze patterns in cover letters and resumes to predict candidate success.

c) Scribe Software

AI scribes are becoming widely used to support interviewers by automatically transcribing conversations into written text, allowing HR professionals to focus on candidate discussions rather than taking notes.

Tools like Metaview record candidate interviews, pull out key points, and generate clear concise summaries of topics discussed. HR professionals can also add their own information about candidates in the AI-generated notes.

Risks Associated with the Use of AI Tools

While these technologically advanced tools offer significant value, the use of AI in recruitment is not without risks.  Employers must be aware of the legal, ethical, and operational challenges that can arise when these tools are implemented without proper oversight and safeguards. These risks include the following:

a) Bias and Discrimination

AI recruitment tools often learn from historical hiring data. If this data reflects past biases, such as favouring certain genders, ethnicities or age ranges, the tools may perpetuate or amplify these biases in their decisions. Importantly, organizations remain accountable for the outcomes produced by the AI systems they use, regardless of whether these systems are developed or made available by third parties.

Organizations should review applicable employment and human rights legislation, such as the Ontario Human Rights Code, which prohibits discrimination in employment, and ensure key employees understand the organization’s responsibilities when it comes to eliminating bias and discrimination in the recruitment process. The Ontario Human Rights Commission (the “Commission”) provides more information on grounds of discrimination and the scope of protection here. The Commission—in collaboration with the Law Commission of Ontario—has also developed a Human Rights AI Impact Assessment tool to help organizations assess their AI systems for compliance with human rights legislation. A backgrounder on the tool can be found here.  While the tool is tailored to Ontario, its principles have broad application across Canada.

b) Lack of Transparency and Explainability

Transparency requires employers to proactively inform candidates about their use of AI so they can make well-informed decisions at every stage of the recruitment process. In Ontario, it will soon become a legal requirement for employers with 25 or more employees to disclose their use of AI where it is used to screen, assess, or select applicants for publicly advertised job postings. For more information on this disclosure requirement, which becomes effective on January 1, 2026, see the following articles: Working for Workers Four: ‘artificial intelligence’ disclosure requirement and Bill 149: the Working for Workers Four Act, 2024

Just as important is explainability—being able to clearly describe how your AI tools make decisions and recommendations. Without explainability, it becomes difficult to identify unfair outcomes or defend hiring practices. Having this clarity can help organizations fulfill their legal obligations and build candidate trust.

c) Data Privacy and Protection

AI recruitment tools inherently involve the collection of a candidate’s personal information, and can sometimes collect significant personal and sensitive applicant information. This information could include resumes, contact details, prior work experience, and responses to screening questions. If not properly protected, this information may be exposed or misused. Employers should take care to ensure that they have provided adequate notices or consents for the use of the AI recruitment tool, which may include implementing a candidate privacy policy. Employers should also ensure that they have implemented appropriate policies regarding candidate access and correction to AI tool outputs, as well as any necessary privacy impact assessments, where required by privacy laws. Employers must ensure that candidate information is only accessible to those who need it and that they can clearly explain how applicant data is stored, retained, used, and protected. Otherwise, employers run the risk of legal liabilities and reputational harm.

Best Practices for Employers

Taking proactive steps to implement responsible, transparent, and compliant practices isn’t just a suggestion—it’s an essential part of an organization’s risk management strategy.  The following approaches can help organizations make the most of AI, while safeguarding related risks and fostering candidate trust:

1. Consider Human Rights Law and Policy When Implementing AI Tools

An important and perhaps obvious first step for employers is to ensure that they understand their responsibilities under applicable human rights law, which exists to prevent discrimination based on protected characteristics. If employers are unaware of their legal obligations, or how the AI tools work, they risk implementing AI tools in a manner that may unfairly disadvantage certain groups. By keeping compliant, employers are able to foster a fair, inclusive, and legally sound recruitment process that manages legal risk for the organization.

2. Maintain Human Oversight and Accountability

AI should assist, but not replace, human decision making. Employers should ensure that qualified individuals review AI-generated outputs and remain the  final decision makers. Human oversight helps catch errors, provide context, and ensure fairness throughout the process.

When using AI transcription or scribe tools during interviews, it is especially important to maintain transparency with candidates and clearly communicate how these tools are being used. HRPA members have access to a practical AI Scribe Toolkit, which includes:

– Sample interview booking email language
– Scripts to explain scribe use during the recruitment process
– Ready-to-use responses to candidate FAQs

These materials can help HR teams build trust, ensure compliance, and standardize communication across the hiring process.

3. Implement Candidate Consent/Notice Processes

Depending on the industry and province, employers may be required to provide candidates with additional information regarding the collection, use, or disclosure of personal information during hiring processes, including regarding the use of AI tools. In addition to a candidate privacy policy, when selecting AI tools, employers should consider how candidates will be informed of the use of an AI tool before the tool is used, and consider whether candidates will have to opt-in, or how they may opt-out, of the use of such tools.  Employers should also consider implementation of security, retention, access, and complaint policies, as well as privacy impact assessments for candidates in Quebec.

4. Conduct Vendor Due Diligence and Understand Terms of Use

When selecting AI tools, a thorough due diligence process can help uncover legal, ethical, and operational risks.  Key questions to consider include:

– Can the vendor explain how the tool was trained and how it makes decisions?
– Is the tool regularly audited or tested for fairness, and if so, how?
– What are the vendor’s data handling and retention practices?
– Do the terms of use meet the requirements under privacy laws for the protection of personal information?

Don’t skip the fine print, either. Employers should understand the terms of use governing the AI tools they leverage in recruitment processes. These terms set out the legal and ethical boundaries for how the tools can be utilized. By thoroughly reviewing and analyzing the terms, employers can ensure they are able to explain how decisions are reached, protect applicant data in compliance with privacy laws, and mitigate the risk of engaging in biased or discriminatory decision making.

5. Develop Internal Policies for the use of AI Tools

Employers should also have policies in place to inform employees of the various AI tools and how they influence recruitment practices and decisions. These policies should identify the tools in use and their purpose, outline clear roles and responsibilities for human oversight, and establish processes for responding to issues, requests for access to information, and complaints. Training is a key component to ensuring the responsible use and adoption of AI.

6. Monitor Tools Over Time

AI models can evolve or degrade over time. Employers should build in regular review cycles of their tools to ensure ongoing accuracy, fairness, and relevance.  This is especially important as job requirements change or candidate demographics shift.

7. Transparency

Transparency and explainability also support a strong candidate experience. Informing applicants when AI is used and providing meaningful ways to ask questions or seek clarification can strengthen an organization’s brand and foster trust in the recruitment process.