AI has already changed the way organisations hire. From automated CV screening to video interviewing platforms, most companies now rely on artificial intelligence somewhere in their recruitment process. The promise is obvious: faster shortlisting, improved consistency and reduced admin. But as adoption grows, so does the need to understand the limitations, especially when it comes to fairness and transparency.

As an organisational psychology student, I’m fascinated by how humans make decisions. And when I look at AI in hiring, one theme keeps coming up: AI learns from historical data, and that data isn’t always fair.

The benefits of AI depend entirely on the quality of the data it learns from. Past hiring decisions often include unconscious or systemic bias — who was promoted, who was considered “leadership material”, which CVs were screened out early. When AI models are trained on this history, they can unintentionally reinforce the same patterns.

This isn’t theoretical.

A recent lawsuit in the U.S. (Mobley v. Workday) brought algorithmic bias into the legal spotlight, highlighting the very real risks for employers.

Meanwhile, the EU AI Act has now labelled recruitment technology as “high-risk”. This requires organisations to have strong evidence of fairness, transparency and accountability. Australia is watching closely and is expected to follow with stronger guidelines in the coming years.

If organisations don’t prepare now, they risk non-compliance, reputational damage, and poor candidate experiences.

Transparency Builds Trust, and Candidates Expect It

Today’s job seekers are more informed and more sceptical. Research shows that 66% of candidates worry about whether AI hiring tools are fair. And they’re beginning to ask questions:

• Was my application reviewed by a person or an algorithm?

• How was the decision made?

• Why wasn’t I selected?

This makes transparency a strategic advantage.

Australian platform Sapia.ai reported that candidates rated their AI interviews 9/10 for fairness, not because the technology was flawless, but because the process was explainable, consistent and human-centred.

Clear communication improves candidate confidence and strengthens your employer brand.

AI can transform recruitment for the better. It can reduce bias, improve consistency and make hiring faster and more efficient. But without strong ethical guardrails, it can just as easily amplify existing inequities.

The future of recruitment belongs to organisations that embrace AI’s efficiency while maintaining human oversight and accountability. Those who get that balance right will deliver better outcomes for candidates and employers alike.

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