ARTICLE
14 October 2026

The Impact Of AI Bias On DEI

HB
Hall Benefits Law

Contributor

Strategically designed, legally compliant benefit plans are the cornerstone of long-term business stability and growth. As such, HBL provides comprehensive legal guidance on benefits in M&A, ESOPs, executive compensation, health and welfare benefits, retirement plans, and ERISA litigation matters. Responsive, relationship-driven counsel is the calling card of the Firm.
Human resources departments are rapidly adopting artificial intelligence to streamline operations, but this technological shift raises critical questions about algorithmic fairness and representation. When AI development remains concentrated among a handful of companies and excludes diverse perspectives, can these tools truly serve all employees equitably? The intersection of machine learning and workplace diversity reveals troubling patterns that demand immediate attention from HR professionals.
United States Employment and HR

As human resources (HR) departments increasingly use artificial intelligence (AI) to automate as many functions as possible, experts on inclusion have expressed concern about its inherent biases. AI tools could introduce new biases, and the development process could also introduce bias across recruitment, hiring, and separation.

Some experts have pointed out that only a few companies create and control AI technologies. These companies’ monopoly on AI-based HR tools can lead to very specific directives about how and when those tools are used. For instance, when companies exclude certain groups from AI development, AI tools are unlikely to address their needs or represent them accurately.

Furthermore, deep learning, a type of machine learning that underpins AI tools, can also ignore groups in ways that lead to bias in hiring. For instance, pre-hiring algorithms may rate job applicant video interviews in a way that excludes certain racial groups based on the emotional cognition of their faces.

As a result, while HR personnel may find AI useful and efficient, they must also recognize the biases it can create. Unless diversity is built into the foundations of AI tools from the outset, biases are likely to show up in those tools.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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