AI has arrived, and is not only the subject of great debate, but is being utilized in every industry, with all of its inherent risks, positive efficiencies, and labor reducing properties. AI is emerging in the background check industry through automated decision-making and instant record searches, which make the screening process faster. But speed and efficiency comes with a hidden cost.
FCRA Obligations
AI screening tools are bound to the same regulations as a traditional Consumer Reporting Agency background check. When it comes to Fair Credit Reporting Act (FCRA) compliance, “we didn’t know” is not a defense.
When obtaining a candidate or employee’s information, criminal history, and other PII, you are required to follow FCRA guidelines. In fact, utilizing AI doesn’t lessen compliance liability, the obligations are often increased. These three practices must always be followed when obtaining and using a candidate or employee’s information:
Risks of using AI in Background Checks
Algorithmic bias - AI systems can unintentionally reflect bias in their data which can expose employers to discrimination claims.
Automated decisions - AI automated decisions may cause an adverse action violation due to improper adverse action process, for example: not providing the candidate with time to respond.
Irrelevant Data – the FCRA requires that information on a candidate or employee in hiring decisions must be relevant to the job description, as well as it must be collected and treated correctly. Utilizing AI to collect more data than required for the job, through traditional or non-traditional sources, may lead to compliance issues.
Source Risk – You are ultimately liable if your AI background check utilizes unreliable data sources, neglects to maintain a dispute process, or lacks transparency with data sources or decision logic.
Risk Reduction
In a world where AI is everywhere, how can you as an employer reduce risk in your background check process?
The answer is simple…partner with a reputable, transparent, compliant, and long-standing CRA like Choice Screening. Our intuitive technology helps you stay on top of evolving industry trends, all while remaining compliant. Automated workflow integration, real-time results, and direct ordering are just a few of the many powerful tech innovations we offer. Products, integrations, and services can be tailored to meet the needs of your organization. Invest in your hiring process with a personalized experience and access to the best background check and compliance subject matter experts. Contact us today!