Automated decisions can streamline the hiring process – with the right safeguards in place

Over the last year, we have engaged with more than 30 employers to better understand the use of ADM in recruitment. Employers reported significant benefits from using automation, which tended to be applied at early stages of the hiring process.

We identified a need for greater transparency and improved safeguards, consistency in any human involvement, and adoption of good practice when it comes to monitoring for bias. We wrote to 16 organisations likely to be using ADM to make decisions about candidates, and they have now committed to acting on recommendations to improve practices.

We also conducted public focus groups where participants raised concerns about automated decisions without human oversight - including a lack of transparency and the potential for existing biases to be amplified.

William Malcolm added:

"Jobseekers want to work for an employer they can trust - this trust is built and maintained by using people's personal information fairly and respecting their rights. Being transparent about how you are using AI and automation in your recruitment processes gives people confidence. We are here to help you get this right, providing certainty on what the law requires to ensure consistent practices across the economy."

Keith Rosser, Chair at the Better Hiring Institute, said:

"AI has the potential to be the biggest single change to hiring since the internet. Whether this change is positive or negative depends on how we - the UK hiring community - harness and apply it. It should be about hiring outputs, leaving humans to focus on the outcomes. The Better Hiring Institute mission is to make UK hiring faster, fairer, and safer, and AI could just as easily hinder as it could help all of these. This is why we welcome the employer-centred report from the ICO on ADM and hope it becomes crucial reading for every employer using - or thinking of using - AI and automation in recruitment."

If organisations wish to use ADM in recruitment processes, we expect them to:

• Proactively monitor for bias: Organisations need to work hard to build trust with people when there are engrained concerns about bias and discrimination. Test regularly for biased outputs and take steps to mitigate this, so people can trust that all decisions are fair. Good practice also includes asking developers about their own bias testing when procuring tools and considering monthly bias reviews.
• Be transparent with jobseekers: Organisations need to be clear with candidates if ADM is being used and explain how it works.
• Explain rights to recourse: Organisations must tell candidates how to exercise their right to challenge a decision and request a human review if they believe it is incorrect.

We have today launched a consultation on our draft ADM guidance. The new guidance provides clarity on how all organisations can use ADM and sets out where and how safeguards must be used. Open until 29 May, organisations can respond to the consultation here.

Last year, we launched our AI and biometrics strategy, with ADM in recruitment as one of the primary areas of scrutiny.

In 2024, the regulator audited several providers and developers of AI tools for the recruitment industry. It made almost 300 clear recommendations for providers and developers to improve compliance with the law, and followed up with organisations where there were outstanding concerns.