Page 78 - CFJ_Feb26

ADVICE & INFORMATION

Artificial intelligence in HR and recruitment

The Equality Act 2010 establishes that Data security presents additional penalties and reputational damage.
employers must prevent recruitment serious concerns requiring careful Regular system audits are imperative
processes from producing discriminatory consideration. Flooring businesses to identify concealed bias within
results, whether through direct or indirect must recognise the risks surrounding algorithms and verify security integrity,
discrimination. commercially sensitive information, system robustness and ongoing
Automated tools that disadvantage including project specifications, client compliance with equality, data protection
protected groups, encompassing databases, pricing strategies, supplier and employment legislation. Algorithm
characteristics including sex, race, relationships, and employee records, training data requires systematic scrutiny
age, disability and religion, may trigger which could be unintentionally exposed to confirm it represents diverse candidate
employment tribunal claims. Crucially, through public AI systems. populations across ethnicities, genders,
legal accountability rests entirely with the For contractors operating in ages and educational backgrounds—not
employing contractor, not the technology competitive tender environments where just historical patterns that may reflect
supplier providing the AI platform. commercial confidentiality is paramount, past industry imbalances.
Data protection requirements such data breaches could prove Continuous human review of all
The General Data Protection Regulation catastrophic, potentially compromising system outputs remains essential to
(GDPR) and Data Protection Act 2018 competitive advantage and damaging verify alignment with organisational
establish specific legal requirements for hard-won client relationships built over policies, industry standards and
employers deploying AI technologies. years of reliable project delivery. regulatory obligations. This oversight
GDPR explicitly safeguards data subjects, Essential safeguards should extend beyond initial recruitment
job applicants, and existing employees Businesses integrating AI technology to encompass performance monitoring,
from consequential decisions that rest into recruitment and HR operations disciplinary processes and any
solely upon automated processing. should establish comprehensive written automated assessments affecting
Companies cannot depend exclusively policies governing both organisational employees’ terms and conditions.
on AI for recruitment decisions, performance accountability and staff conduct regarding Fundamentally, human oversight must be
evaluations, disciplinary actions or AI usage. These policies need not be overly embedded throughout every AI-dependent
termination determinations; there must complex, but they must be clear, accessible process. This encompasses scheduled
be practical human involvement. and consistently enforced. reviews, explicit accountability structures
Such policies must for automated systems and thorough
identify authorised training for directors, contracts managers,
tools and acceptable HR personnel and anyone else utilising
applications, these technologies for workforce decisions.
alongside expressly Current legislation is unambiguous -
prohibited activities, significant decisions affecting individuals
particularly must remain under direct human control,
uploading with clear documentation demonstrating
confidential client that meaningful human judgment was
information, project exercised.
specifications, In conclusion
pricing data or Effective human supervision, systematic
employee records to audits and transparent governance
public AI platforms. frameworks are mandatory for those
Clear governance embracing AI recruitment tools. Delegating
frameworks decision-making authority entirely to
establishing automated systems generates substantial
who monitors AI legal exposure and reputational jeopardy
deployment and that could prove terminal for smaller
how often systems businesses.
are reviewed are As courts and tribunals adopt
essential. Whilst increasingly stringent positions on AI-
these measures related failures, whether discriminatory
cannot eliminate recruitment practices, flawed automated
risk completely, dismissals or inadequate procedural
they substantially fairness, businesses must ensure
reduce vulnerability operational efficiencies never compromise
to discrimination legal compliance or equitable treatment of
claims and data staff and applicants. 
protection breaches www.coodes.co.uk
that could result in Steph Marsh is an employment law specialist and
significant financial head of employment team at Coodes Solicitors

78 CFJ February 2026 www.contractflooringjournal.co.uk
@CFJMagazine