David Viney, owner of Alchemy Consulting Services and fractional CIO, and Jon Hyman, attorney, shareholder, and director of Wickens Herzer Panza law firm, join the Inside Job Boards and Recruitment Marketplaces Podcast for this extended episode.

Together with cohosts Peter M. Zollman of the AIM Group and Steven Rothberg of College Recruiter job search site, we discuss what is perhaps the hottest topic in our space: whether recent legislation in the EU and UK (and court decisions in the US) make it illegal for job boards to use AI to rank, score, or match candidates against job opportunities.

Many employers and TA tech providers would like to think that their AI-powered hiring solutions are both moral and legal because they improve efficiencies and maybe even help to surface candidates who otherwise would have gone unnoticed. Those folks may be in for a rude awakening, as it's pretty clear that's not enough. Not nearly enough.

Powered by the WRKdefined Podcast Network. 

[00:00:12] Welcome to episode 141 of the Inside Job Boards and Recruitment Marketplaces. I'm one of your two co-hosts. I'm Steven Rothberg, the founder of College Recruiter Job Search Site. And as a fully recovered lawyer, or as my wife would like to say, a recovering lawyer, today's episode is of great interest to me.

[00:00:34] We're going to be talking about UK, EU, and inevitably some U.S. laws that are starting to and definitely will be impacting job boards globally. But before we get into the meat of that conversation, and it'll be an extended episode, we're going to go longer because we have two guests and a really detailed, in-depth kind of conversation coming up. I should probably hand over the baton to my co-host, Peter. Peter, good to see you.

[00:01:01] Thank you. I'm Peter Zollman of the AIM Group. We do consulting content and conferences for job boards and recruitment marketplaces all around the world. Do this podcast, too. Today, we're joined by two esteemed gentlemen. You'll notice I've left out Stephen. Wise choice. The more I'm left out of this conversation, the better. No, just leaving you out of the esteemed gentleman label. Okay.

[00:01:29] We have David Viney, who is sitting in the south of France right now, near Montreux. He is based in London ordinarily, except in August, when all of Europe shuts down. He is the CEO of Alchemy Consulting, and he is paying a lot of attention to what is happening with AI and job boards and recruitment marketplaces and all of that good stuff. And it's good that somebody is paying a lot of attention. We are, too.

[00:01:57] But it changes so fast that the rules are still undefined and changing by the moment. And sitting in Ohio, near Cleveland, is John Hyman. He is with Wickens, Herzer, Panza, a law firm. But I'm not going to talk about his lawyering. I'm going to talk about number one. He is the number one person I follow about recruitment on LinkedIn.

[00:02:24] If you do not follow John Hyman, write down J-O-N-H-Y-M-A-N and follow him. He's terrific. Number two, he writes a substack about civil rights in the U.S. and about the current state of affairs here. And number three, he publishes from time to time worst employer anecdotes about some serious idiocy by employers.

[00:02:52] And it is always a fun read, except for the employer and the employees involved. And I'm so happy that I have never made that list. You keep trying, though, and that's the sad part. In any case, let's talk a little bit about AI, job boards, recruitment marketplaces. And David, let's start with you.

[00:03:18] State of the regulation in the U.K. and Europe as it stands now and as you expect it to evolve. And the timer says we're at 345. We've run long already. Try to boil that down to about a minute and a half if that's possible. Will do. So, I mean, I guess first up, an obvious question is, are we expecting to have our own equivalent of the EU AI Act in the U.K.?

[00:03:46] And the simple answer to that is there is a private members bill which has been mooted. It doesn't have government support. So that will almost certainly not happen. The more general kind of approach to AI is sector by sector. So you have 19 different regulatory authorities that are baking AI into each of their own guidelines, their own recommendations.

[00:04:08] So the most notable one amongst all of that is the financial services sector, where you have an emerged requirement now for a named responsible and accountable board member for AI within financial services organizations. So that will continue to play out, that sector by sector approach.

[00:04:27] But for job boards, I mean, the really key area is the U.K. GDPR legislation, which, you know, just to confuse everyone, post-Brexit is not the same thing as the EU GDPR. We sort of got our own little mini version now, which has been sort of updated for AI specifically. And it's interesting because if you think about it, it's quite an interesting angle to come at the problem, right? How is data being used? Is it being used to harm individuals?

[00:04:56] And individuals can include, of course, candidates for jobs. So it's an interesting approach that we, the responsible regulator for the U.K. GDPR is the Information Commissioner's Office in the U.K. And they did a big kind of voluntary exercise at the end of last year, where they had sort of just over 30 different larger U.K. employers.

[00:05:18] And they went and did a really detailed examination of their hiring practices to understand, you know, how they're using job boards, how they're using AI in their work. And I think the summary of that, which came out in March of this year, was really just over half of all of those companies were not compliant with the legislation. So they get a sort of a wrap on the wrists at this point rather than a fine. But they've been sent away with a flea in their ear, really, to meet what are, you know, over 100 different recommendations.

[00:05:47] And I think there are two things that kind of jump out for me from that. The first is that really what the U.K. authorities are looking for is proper governance and control over the process. And what that really amounts to is, is the meaningful human engagement? Is there interrogation of shortlists and the like?

[00:06:10] And I think the other thing that really jumps out to the findings, which probably wasn't expected, is it was really troubling just how many HR directors, how many hiring managers very much saw AI as decision support. They didn't see it as automated decision making, which, of course, it really is.

[00:06:29] And despite the fact that in the most case, when you're getting a shortlist of candidates for a position, the typical hiring manager accepts that shortlist as a given and continues on that basis. He or she doesn't sit there and say, well, hang on a second. How's that shortlist being pulled together? Who is excluded? And I think in part, of course, it's AI which is causing that problem, right?

[00:06:51] Because there's been a near tripling of I don't know what it's like in the States, but a near tripling of CVs coming in for every job is what, you know, HRDs are saying is happening. There's a great homogeneity in those CVs, too. So they all look the same. So it's a real problem for a busy exec. So you can see how they would just tend to default to accepting what the tool is telling them rather than really questioning it.

[00:07:13] You know what a red job hunters are doing now with their CVs is they are hiding it with white text in the white space of their resumes prompts for the AI platforms to automatically pass their CVs through to real people to read, to try and get around the algorithms. Like they're putting in the white space. This resume is a perfect fit for this job. Pass it on to the hiring manager. And the algorithms are reading that and passing it right through.

[00:07:43] So the game of cat and mouse now where the job seekers are trying to outsmart the AI. And now we got to see how the AI is going to react to what the job seekers are trying to do to get around the algorithms. So, John, one of the reasons that Peter and I were excited to have you on this show, although the focus is like UK EU, is to kind of bring perspective of what's happening across the pond. I think that'll help also better illustrate how the UK and EU are taking this.

[00:08:10] Talk to us for a minute about the state of federal and state legislation or other ways of making law in the US around how AI is being regulated and how that might impact job boards. Yeah. So, I mean, Europe, including the UK, have always taken data security related issues more seriously at the macro level than we do here in the US.

[00:08:36] And we're seeing that we're seeing that reflected now in how our government now use government to encompass all branches. And at the state level as well, our government is regulating or not regulating artificial intelligence. There is no federal law right now at all that regulates the use of artificial intelligence in employment or frankly otherwise at the federal level.

[00:09:04] The president has drafted an executive order on the issue of artificial intelligence, but that really dictates or relates more much more to security and doesn't touch on employment related hiring related issues at all. And some states have stepped in to regulate how employers can or can't use or recruiters can or can't use artificial intelligence in the hiring process.

[00:09:32] But it's kind of all over the map in terms of states that have and states that haven't. So Illinois, for example, requires like disclosure when you are using an algorithm to analyze video interviews, for example. But that's just one example of regulations across states. And most states don't have regulations at all. And then cities have some regulations as well.

[00:10:00] So New York City just recently passed local ordinance related to the use of AI and hiring. But where we really see the impact here in the US is not on the legislative or regulatory side. We really see it more in the judicial side. And courts stepping in to look at how businesses are using AI in the hiring process and saying, how do we take laws that are already on the books?

[00:10:29] Right. Because courts interpret laws. They don't write laws. How do we interpret laws that already exist to prevent employers from misusing artificial intelligence in the hiring process? And so what we're seeing, for example, is with the Title VII of the Civil Rights Act in 1964, the now 62-year-old law that makes it illegal to discriminate on the basis of race, sex, religion, national origin, etc.

[00:10:58] In employment decisions, we have seen courts say that you are employers. You're not using artificial intelligence to intentionally discriminate against job candidates. But the way that you're using artificial intelligence might inadvertently tend to screen out particular protected classes of individuals based on race, based on sex, based on disability, based on age, what have you.

[00:11:25] And courts are using what is referred to as a disparate impact theory of liability. You have a facially neutral rule, a policy, a procedure, a practice that on its face doesn't intentionally discriminate, but how it's deployed tends to discriminate.

[00:11:44] And courts are using that theory of liability and saying recruiters, hiring managers, employers, staffing companies, whatever, you are using AI in a way that tends to screen out black applicants or female applicants or disabled applicants.

[00:12:03] And therefore, we're going to require you to justify the job-related business necessity for using AI here in order for your practice to pass muster. And the problem is, is that most businesses that are now using these AI-related tools haven't done the vetting required on the front end to make sure that their use of it on the back end doesn't discriminate. And that's where we're seeing the push and pull right now. Yeah, I mean, can I just build on that real quick?

[00:12:33] I mean, I think one of the areas that I think the US has been a leader in is actually doing the research, doing the hard work to understand what the harms might be. And there's a really interesting report from Stanford's AI unit in May where they were looking at a screening tool called PyMetrics. And what they found is out of 4 million job applications, there were 40,000 black or Asian candidates that didn't proceed to interview that previously in the baseline data would have done.

[00:13:03] So you're starting to see that, you know, that emerging clear evidence now in kind of peer reviewed, large sample size research that shows that there really is adverse impact. And I think that the really sort of interesting aspect of that is PyMetrics are one of the good guys. They have a stated objective of trying to eliminate bias in hiring. And Stanford, we're expecting them to be an exemplar.

[00:13:26] So you can imagine if that's what they found looking at one of the good guys, you can only imagine what some of the bad guys are doing in terms of their tools. And employers in their part are rushing to try and find solutions to simplify the processes. And so they're going to these platforms and they're engaging without doing any, they're trusting the AI vendor without doing any vetting whatsoever for has there been, you know, what is the impact analysis here? Does this have an adverse impact?

[00:13:55] What does this do to our pipeline and funnel and our ultimate final applicant pool? The employers are trusting the AI to do all that for them without doing any vetting on their own of what that actually looks like in practice as either applied in general through the platform or applied to their particular pipeline of applicants. And that's where employers, at least here in the U.S., are getting themselves in trouble. I want to direct this first to David, but then I want John to weigh in too.

[00:14:25] Seems to me that with multinational, semi-global, international job boards, recruitment marketplaces, by definition, they have to adhere to the most rigid, the most challenging standard. So indeed, and we'll talk about them shortly because they've just pulled an interesting step by placing all the liability on the employer. But let's put that aside for the moment.

[00:14:53] David, in Europe, Stepstone and Indeed are the number ones mostly. There are some markets where they're not. Do they have to follow the most stringent rules? And are they doing so? And likewise, Total Job Stepstone in the U.K., Indeed in the U.K. And then, John, same question to you for the U.S. But David. Sure, yeah.

[00:15:21] So, I mean, I think the first thing to start with is obviously the EU AI Act is extraterritorial in its jurisdiction. So similar to the GDPR regs that came before. So really anyone who's serving the EU market, hiring into the market is going to need to comply with the legislation. I think another thing which seems to have escaped a lot of people's notice is that there are already provisions of the EU AI Act in place that affect the hiring process.

[00:15:50] The so-called prohibited practices, which have been illegal now for some time. And mostly those fall into the category of using biometric data. So whether to infer emotions, for example, you know, whether a candidate is engaged with the conversation and excited about the company, whether a candidate's lying, you know, using AI to score and infer that kind of behavior is a total no-no.

[00:16:14] There's also the sort of narrow use case of actually using AI to categorize people, whether that's by racial characteristics, gender or sexual preference or any of the above. But I think the former in particular has already had quite a large impact because there was a real growing trend towards employers using video interview tooling. And you mentioned Illinois, John.

[00:16:39] I think there's a real kind of synergy there with the prohibited practices in the EU. So the stuff that already applies. But beyond that, I mean, for most practice, having AI in your job board is not illegal. Number one, right? Right. Again, like with the UK legislation, though, it's all about how you govern it, how you control it, how much meaningful human intervention there is in the loop.

[00:17:03] I think where the EU differs from the UK, and this is really important for the conversation to come around indeed and similar, is that the UK GDPR is all about the employer. It doesn't really talk to the responsibilities of the vendor in any meaningful way. Whereas the EU legislation does put very clear responsibilities on both the employer and the provider of the platform.

[00:17:30] And I think the other part of your question, I think, really was, so are people already there? Are they already complying? And I think the answer to that is a very sound no. And there's a very good reason for that, which is that the legislation in a way was ahead of the detailed guidance.

[00:17:47] So there was an intent to have the standards bodies in each individual country formulate detailed guidelines for employers to follow in order to be in compliance with that kind of governance and control aspects. But that has lagged to the legislation significantly. The latest date for it to be published is Q4 of this year.

[00:18:09] The deadlines for compliance for this kind of, if you like, the broad field of hiring has been extended to the 2nd of December of next year. So let's call it, let's say December they come up with the guidance. It's really only going to leave 12 months of runway for the vendors and for employers to get ready to some instructions they can actually use. So there's always a possibility, of course, that the deadline might be shifted again. Had it not been shifted, we'd have been talking about it right now.

[00:18:39] It would have gone live on the 2nd of August. Yeah, and we're recording on August the 6th. So it would have been four days ago that that world would have changed. I mean, for an employer here in the U.S. who has operations touching on multiple states or touching internationally,

[00:18:58] it is operationally unsustainable to maintain 50 different sets of guidelines and then adding in like a U.K. element or an EU element on top of that. To me, what makes the most sense, and it's really no different if I'm drafting an employee handbook for a business or giving them guidance on what they should be doing with their AI hiring practices, the answer is going to be the same.

[00:19:25] You find the most stringent standard that's out there and you make that your default because, A, you are safeguarding your practices against future changes down the road. You look at what the most stringent is now and you say that if the EU is the most stringent, but I'm in Ohio. Ohio doesn't have any AI laws, but someday they might.

[00:19:47] Despite the laws in Ohio change, I'm already going to be compliant most likely because I'm now adhering to the most stringent law that's out there. And in this day and age when hiring is global, can you really say that I'm an Ohio employer, so I'm only hiring from a pool of potential applicants in Ohio? When you don't know where resumes are coming from, resumes, you put a job out there on Indeed or LinkedIn, even though you're here in Ohio, those applications are going to come from all over the place.

[00:20:16] And so you really have to default to whatever the most stringent law is out there. You don't want to have 50 different laws or 50 different standards because now every time a state or a country does something different or makes a change, you don't have to change. You become a compliance monitor for global AI rules and regulations, and now that becomes your full-time job.

[00:20:41] And so I really think the smartest thing to do is just find what the strictest set of guidelines are out there and then deploy that universally as your set of rules for how you are going to internally regulate the use of AI for your recruiting and hiring within your organization.

[00:21:05] And what John is suggesting there reminds me 187 years ago when I was in law school and working in the corporate legal department at Honeywell, I was literally revising the employee handbook. We were a very big, very decentralized company, and I had to go through every single policy the first probably month or two that I was there. And what is my boss called a blue sky?

[00:21:29] What is the most stringent policy when it comes to time off, to payroll timing, to vacation or leave, jury duty, all of that kind of stuff? And boy, did I find some incredibly inconsistent laws. Some states had like no law about jury duty at all. Are you allowed to take it? Are you allowed to? Do you have to get paid? And other states, it's like everything was buttoned down. It was really interesting how disparate it was.

[00:21:58] David, I bet over the last year, I have had probably 50 conversations with job boards or related talent technology vendors about these sorts of issues. Overwhelmingly, the response that I get back is, well, our technology does a really good job in helping to surface candidates that otherwise the employer would not have seen.

[00:22:27] Therefore, we're a good guy. Therefore, we have nothing to worry about. Your response? Yes, I think I might go back to the Pymetrics example actually and expand on that a bit because it's actually very instructive. So, as I said, Pymetrics are very mission and purpose driven about eliminating bias in hiring. And their own internal tests weren't showing any signs of any bias because they were looking at it in the aggregate.

[00:22:55] But, of course, as you know, in the US, the sort of guidelines are very clear. You have to look at an individual job by individual job. And that's the work that Stanford did, really. So, you might have a scenario where, say, a black candidate was perhaps 20% more likely to get a security card job, but 20% less likely to get a CEO job. And the net result was it looks fine in the aggregate, but actually it's absolutely not okay on an individual case-by-case basis.

[00:23:22] So, I think what I would say is a key part of the kind of vendor response to this, I think, is around explainability. The truth is that there are a lot of capabilities within AI that are called in the trade emergence. You know, we don't quite understand how the AI has come up with that. You know, how has it generated that particular shortlist?

[00:23:42] And I think it's going to become important for vendors to be able to explain their algorithm and to test it properly on individual cases rather than just rely on aggregate data where it's all a wash. And also, I think more broadly, I think it's interesting the difference in regulatory approach around the world. I think a lot of that is due to the fact that the harms haven't been clear. The benefits have been clear, but the harms have not been clear.

[00:24:07] I think as the harms become more clear, I think there'll be more of a settled position in the long run over whether it needs to be harder regulation or lighter touch. Yeah, it's hard to know if you're one of 200 people who applied to a job and you didn't get it. Especially if you weren't a finalist. Why you didn't get it. Exactly. And the other thing about sort of, but Pymetrics again is a good example. That tools, it's 90% of employers now globally use AI in hiring shortlists.

[00:24:37] So that's the World Economic Forum numbers came out this year. So it's there. It's everywhere in full intents and purposes. But, you know, really when asked a question, do we know what we're doing with this? Do we really know what we're doing with it? That brings me to one of the things that I want to direct to John first, but then also to you, David. Auditability. AI seems to be pretty much a black box.

[00:25:04] There's no way to say to AI, okay, why did you include these 10 candidates and why did you exclude these 50 candidates? Granted, you can ask it and it'll probably tell you, but there's no real audit trail. John, do you think that's a big problem? Is that not an issue? Is that the crux of the matter? It's all of the above. Aside from it not being a big issue, it's all of the above.

[00:25:34] It's a massive issue. I mean, that's the issue there in a nutshell, at least here in the U.S. Because without that audit trail, without that information, you can't vet whether the algorithm is disparately impacting black candidates or female candidates or disabled candidates. That's like the most high profile case we have right now in the U.S. on the issue of AI and hiring is Mobley versus Workday, which is pending in federal court in California.

[00:26:01] And in that case, the plaintiff, Derek Mobley, says he applied for like over 100 jobs through Workday's AI platform through various employers and through Workday's hiring platform with various employers.

[00:26:20] And the AI that screened his resume dinged him for every single job, which he says was because of his age, he's over 40, because of his race is black, because of his disability, he has anxiety and depression. So far, like the case is very, it's been pending for a couple of years, but it's very early in the case. And the issue that's been litigated so far is can the employer be jointly liable with the applicant tracking software? And the court has so far answered that question, yes.

[00:26:48] And so as an employer, you're responsible for the decisions that are made by your applicant tracking software vendor. And if you don't know how or why they're making the decisions they are making, you have left a giant bullseye on your back for any denied applicant to who belongs to a protected class, which, by the way, is just about everybody to sue you when they are denied employment.

[00:27:16] And so you have to know how these decisions are being made and why certain candidates are being passed through and certain candidates are being denied. And if your vendor cannot provide that information to you, it is time for you to get a different vendor.

[00:27:37] Because I can also guarantee you what these contracts say is AI vendor, whether it's Workday or anybody else, their contract says, and by the way, employer, these are your hiring decisions, not ours. And you are indemnifying us for any liability that we may incur as a result of your decision whether to hire someone or not hire someone based on the use of our software.

[00:27:58] And so the employer is taking all the responsibility, and has no idea why candidate A gets passed through and candidate B gets screened out. And if candidate B is 55 years old, black, and in a wheelchair, they sue you for age, disability, and race discrimination, you better know why that candidate was screened out.

[00:28:21] And have an explanation as to why the algorithm chose the white, non-disabled candidate under the age of 40 and did not choose the black, disabled candidate over the age of 40. Otherwise, you're going to have a big discrimination problem that you can't explain when you're holding the whole liability bag in your hands.

[00:28:42] And John, just to follow up, can you as like the chief human resource officer trust what your vendor is telling you? Because I'm hearing that too. I'm hearing HR people saying, well, XYZ vendors said to us that their use of AI has been proven to be non-discriminatory, and they check the box and they move on. Trust but verify, I suppose.

[00:29:09] Like it's one, if the vendor's going to say, yeah, we've vetted our algorithm and it does not disparately impact on the base of any protected class. It's great they're saying that. All right, now show me the reports and prove it to me. And I want to have, I want to be able to put eyeballs on that data and then give it to someone who can explain it to me because maybe that's not the chief human resource officer at a, you know, pick your company.

[00:29:34] Maybe they need to get, bring in a third party who can then explain to them, yeah, this is cool and this passes muster or hey, hang on. Here's all these red flags that you need to think about before you sign the contract and onboard this vendor because I don't think their data says what they say it says. And speaking of like handing it off to somebody who can actually verify that. So, David, I would imagine that this is a bunch of work that you're working on.

[00:30:01] How often are you seeing vendor claims just being more aspirational than actual? Well, I think I'd be lying if I said that the companies are falling over themselves to do this kind of work at the moment. I think where a lot of organizations are is sort of ISO 42001 certification initially as a kind of an international standard for governing AI. But all that really does is put in place a sort of a set of coat hangers or framework to do your governance from.

[00:30:31] There's still then the meat of it, which is in this case, what would you ask for from a vendor? How would you, you know, ascertain that it's enough? I think a couple of things I'd kind of point to that are interesting in this space, just to build on what John was saying. I think the first thing is I would want to see a new report from the vendor every time there's a material change to the underlying algorithm, not just accept it at the beginning as part of a procurement and then not revisit it subsequently.

[00:30:59] So I'd want to see that it becomes more of a business as usual sort of an interaction between the vendor and the employer. And then I think just sort of focusing more narrowly on the EU picture, we talked about the EU AI Act, but there is an additional product liability directive, which is expected to be adopted into the laws of most EU countries by the end of this year.

[00:31:22] And that puts a lot of additional almost manufacturer liability level responsibility onto the vendors, the AI provider. So they become a little bit like a car company, you know what I mean? If they have a few car crashes, they're going to be in trouble. So I think that product liability directive in particular laid on top of the EU AI Act is going to drive this conversation in a much more meaningful way. I want to just very briefly, we've got time for one or two more questions.

[00:31:52] I'm going to take one. I'll leave the last one to Stephen and he'll wrap up. So indeed this week, last week, a couple of weeks ago, seemingly, and I'm not a lawyer, don't want to be a lawyer, don't pretend to be a lawyer and did not read. But you do enjoy paying lawyers. No, I don't enjoy paying lawyers either. My mistake. And it's always painful.

[00:32:16] But indeed, it seems to have changed their terms and conditions basically to say to employers or any user, hey, all of the liability is on you. We accept no liability. It's all on you. Good luck. God bless. John, is that, it is overstating, but it's, is that a fair portrayal?

[00:32:39] And can they, can they do that or are they going to be in a workday situation where, you know, Joe's going to sue Indeed and say, hey, you haven't passed my resume through? They're in a workday situation. So, yeah, I mean, we're years away from finding out what that really means here. I mean, workday is arguing as Indeed will argue if they're sued in a similar case. Look, we're not, we're not the employer. We need to make the hiring decision.

[00:33:07] We're just passing on data to the employer and they're the one ultimately, that's ultimately making the decision. And the hiring entity, the employer is pointing the finger back and saying, yeah, but we made that decision relying on the data that you provided us based on your algorithms. And they're, they're going like this. And the plaintiff's lawyers, frankly, are happy. They're thrilled to have them point at each other because the answer is to a jury at some, at some point, someone made this decision.

[00:33:37] And so, you know, employer says AI vendor did, AI vendor says employer did. We don't care. Find one of them responsible. So the employer, the plaintiff is happy to have them kind of point the finger at each other. But yeah, I think you're right. I think Indeed is going to have the same problem that Workday has, which is ultimately it's their algorithms. It's their, they might not be making the ultimate decision, but the decisions are being made based on their data, the data that they're providing.

[00:34:05] Yeah, I think one of the, one of the things that Stanford talks about in their report was this, I think they use the term algorithmic monoculture. So this idea that, you know, tools like Workday, Pymetrics, which we talked about earlier, they're used by multiple employers. So, you know, if you're somebody who is falling foul of the algorithm with one employer, you could be falling foul of the algorithm across multiple different applications for the same reason.

[00:34:31] And, and then the way I'd put it to people is imagine that's your son or your daughter, you know, and they're applying for a job and they just cannot get a look in. It's something we need to take seriously. And I think from my point of view, I mean, it's not just hiring, it's just more generally across AI. I think the number one skill in the modern day and age is, is the ability to interrogate AI, to understand how it's forming its conclusions, where some of the limitations might be, where some of the outright hallucination might lie.

[00:35:01] I mean, one thing digitally gets took it to a group of HRDs recently, and they seem to be completely unaware that when someone sends them a CV that they've used an LLM to customize towards a job description, that there's a somewhere in the region of a 10 to 20% chance that there'll be a significant hallucinated element in that CV.

[00:35:20] And if someone's firing off like 50 applications in a day, which is, you know, people, people do sometimes, there's a chance that it would have escaped them, escaped their notice that they've ended up essentially fabricating their CV with an employer. And they then have to go into an interview, of course, and justify the fabrication. So, I mean, there's stuff to take seriously here. And I think the skill, as I said, in the modern day and age is, can you interrogate and understand and explain what your AI is doing? It doesn't get you off the hook.

[00:35:47] You're still, you know, the decision maker ultimately using a tool, but you have to form a view. Yeah. And I think the problem is right now, too many businesses are just relying on hope. We hope the AI is giving us correct information. We hope the AI is not discriminating. We hope, we hope, we hope, we hope. And hope is a terrible compliance strategy. I mean, hope will get you talking to me and getting very expensive legal bills in the mail to fix your problems. And it's great for me, but not great for businesses.

[00:36:16] So, I would, if there's kind of one takeaway from all of this today, it would be don't just, you've got to vet and you've got to make sure that your vendors are taking this stuff seriously. And that they're, and when they're telling you that we don't, our algorithms don't discriminate, that you just don't take them on their face and that you actually double check their work. Because otherwise you're, you're, you're begging for a lawsuit.

[00:36:44] Yeah. And I think for, for folks who are going to use people like, like John or David, I think John and David, you'd both agree. You'd much rather have those people come to you to help them stay out of trouble than to help them figure out how to get out of trouble they're already in. Ounce of prevention is worth a pound of cure. Well, what's better for the, what's better for the business versus my bottom line? Because they're very different from my bottom line. It's much better. You come to me after this blows up in a huge mess, but for a business, that's the worst possible time to talk to a lawyer.

[00:37:14] You want to, you want to talk to your lawyer on the front end so it can all be done correctly on the way in, as opposed to me trying to fix it on the backend, which will cost 10 times, 50 times, a hundred times more in legal fees. Yeah. And, and, and the brand of the employer and all the rest of it. So just to wrap up then, John, I'll go to you first and then David. So I'm a job board owner. I'm not actually speaking about myself, just the, the, the audience.

[00:37:40] By the time this episode airs late August, they're going to have a little over four months to go before the end of 2026. What should they be doing in those four months to help ensure that they are on the right side of these laws and regulations, whether they're coming out of the legislature, whether they're coming out of the courts. John, go, go first. And then we'll, we'll close with David.

[00:38:06] You know, in my world, I would say to make sure that you have your, your impact analyses buttoned up so that you can do more than just check the box. It says, and we don't discriminate, but that when a, a client comes to you as more will do and say, you know, we want to see the, we want to see the data and then verify it for ourselves.

[00:38:25] You can provide them the data that you relied on in a real, in a, in a real and legitimate and meaningful way so that your customers, your clients can, can have confidence that they are not going to be making discriminatory decisions based on the use of your platform and your algorithm. And David? Yeah, very well said.

[00:38:46] I mean, the only thing I'd add to that possibly is I think if you really want to go the extra mile and delight and get ahead of the problem, a really interesting area is to start to put more functionality into the platforms to help people, A, understand, you know, the recommendations that the AI is giving you, what some of the sort of shortcomings might be or risks might be, and the ability to tweak settings so that you could see a different version of the shortlist if you, if you press the different button.

[00:39:14] I think it's certainly something that the E, you're looking at a lot in, in their, the sort of the longer term guidance. It's that kind of, in a way, helping employers to help themselves is the way I would describe it. Because as we touched on earlier, the average kind of busy executive, A, they don't have the time and B, they, they really don't know where to start. But if you, if you make it a bit easier for them to do that interrogation better, then that helps everyone. What a great way to end it. I especially like hope is a terrible legal strategy.

[00:39:44] And I'm sure every lawyer in the room and every lawyer out there agrees with you, John. But it's trademarked now. So I need to get that on coffee mugs quickly. Yes. And send us one. And then instead of using his, instead of using his college recruiter mug, or I using my aim group mug when I'm at home, we'll use hope is a terrible legal strategy mugs. And thank you, gentlemen, all three of you for joining us today.

[00:40:13] It's been a lot of fun. We're going to turn this into an article for the aim group and we'll send it to you when it comes out. And yeah, it's been a lot of fun, but it's also been some very serious and meaningful stuff. And I hope all of our clients and friends who listen in take it to heart. Thank you. Thanks, guys. Thank you so much. Cheers. Cheers.