IAPP Artificial Intelligence Governance Professional (AIGP) — Question 79

CASE STUDY -
Please use the following to answer the next question:
A premier payroll services company that employs thousands of people globally, is embarking on a new hiring campaign and wants to implement policies and procedures to identify and retain the best talent. The new talent will help the company’s product team expand its payroll offerings to companies in the healthcare and transportation sectors, including in Asia.
It has become time consuming and expensive for HR to review all resumes, and they are concerned that human reviewers might be susceptible to bias.
To address these concerns, the company is considering using a third-party AI tool to screen resumes and assist with hiring. They have been talking to several vendors about possibly obtaining a third-party AI-enabled hiring solution, as long as it would achieve its goals and comply with all applicable laws.
The organization has a large procurement team that is responsible for the contracting of technology solutions. One of the procurement team’s goals is to reduce costs, and it often prefers lower-cost solutions. Others within the company deploy technology solutions into the organization’s operations in a responsible, cost-effective manner.
The organization is aware of the risks presented by AI hiring tools and wants to mitigate them. It also questions how best to organize and train its existing personnel to use the AI hiring tool responsibly. Their concerns are heightened by the fact that relevant laws vary across jurisdictions and continue to change.
Which of the following measures should the company adopt to best mitigate its risk of reputational harm from using the AI tool?

Answer options

• A. Test the AI tool pre- and post-deployment.
• B. Ensure the vendor provides indemnification for the AI tool.
• C. Require the procurement and deployment teams to agree upon the AI tool.
• D. Continue to require the company’s hiring personnel to manually screen all applicants.

Correct answer: A

Explanation

Testing the AI tool both before and after deployment helps ensure that it operates as intended and reduces the likelihood of biases or errors that could harm the company's reputation. The other options, while potentially beneficial, do not directly address the immediate risk of reputational damage resulting from the use of the AI tool.