4 Key Risk Areas That Need to be Managed for Successful AI Adoption

4 Key Risk Areas That Need to Be Managed for Successful AI Adoption

By leveraging generative AI in recruitment, organizations can improve candidate engagement, gain valuable talent acquisition analytics, transform the interviewing process and enhance job postings. While promising, leaders should be cautious and consider the challenges before adopting the technology. This is an excerpt from an article first published in August 2023 from guest blogger Everest Group Practice Director Sailesh Hota.

#1 Data Privacy and Security

Democratizing usage magnifies the avenues for potential information leakage such as employees sharing personally identifiable information (PII) in prompts and regulatory fallout from data collection and retention without proper disclosure. Organizational data also stands at risk of breach when used to fine-tune generative AI models.

#2 Hallucinations and explainability

Hallucinations refer to the generation of outputs that may appear plausible but are either factually incorrect or out of context. This can occur due to insufficient training data, inherent biases, or misunderstanding. The lack of any visibility in the reasoning process and the inability to trace outputs back to specific data points makes it difficult to explain the results generated by AI systems.

#3 Ownership

The absence of any relevant IP or copyright laws at the moment has created ambiguity around the legal ownership of content created by generative AI. This ambiguity can lead to situations where multiple parties claim ownership of generated content resulting in legal battles.

#4 Ethics and Bias

Training generative AI systems on extensive datasets can perpetuate and amplify biases present in the data, resulting in biased outputs that reinforce stereotypes and discrimination.

Furthermore, organizations also need to address various sustainability concerns that call for an AI strategy that is aligned with the firm’s environmental, social and governance (ESG) principles.

While generative AI in recruitment and talent acquisition can offer many positive benefits, enterprise leaders should stay mindful of the evident pitfalls and potential risks before deeply integrating the technology within existing systems and processes.

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