Discrimination in AI-Driven HRM Systems: Ethical Implications and Solutions

Goran Pavlović – Belgrade Metropolitan University, Faculty of Management, Tadeusa Košćuška 63, 11158 Belgrade, Serbia

Vladimir Škorić – Belgrade Metropolitan University, Faculty of Management, Tadeusa Košćuška 63, 11158 Belgrade, Serbia

Abstract: The implementation of Artificial Intelligence (AI) in Human Resource Management has gained significant traction, offering efficiency and precision in recruitment, performance evaluation, and employee management processes. However, concerns regarding the potential for discrimination and bias within AI-driven HRM systems have become a pressing issue. AI systems, while designed to be neutral, can perpetuate or even exacerbate discriminatory patterns based on race, gender, age, or socioeconomic status due to biased training data or flawed algorithmic designs. The research examines the key factors contributing to discriminatory outcomes in AI-driven HRM systems, including the lack of diversity in training datasets, the reinforcement of historical inequalities, and the absence of transparency in AI decision-making processes. It further analyzes the ethical challenges that arise when these biases result in unequal treatment of job candidates and employees, thus undermining fairness and inclusivity within organizations. To address these issues, the study proposes solutions to mitigate bias and discrimination in AI-enhanced HRM. These solutions include developing more diverse and representative datasets, implementing auditing mechanisms to identify and rectify biases, and increasing transparency in AI systems to ensure accountability in HR practices.

8th International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2024 – Selected Papers, Hybrid (Zayed University, Dubai, UAE), October 24, 2024

ITEMA Selected Papers published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ITEMA conference partners: Faculty of Economics and Business, University of Maribor, Slovenia; Faculty of Organization and Informatics, University of Zagreb, Varaždin; Faculty of Geography, University of Belgrade, Serbia; Institute of Marketing, Poznan University of Economics and Business, Poland; Faculty of Agriculture, Banat’s University of Agricultural Sciences and Veterinary Medicine ”King Michael I of Romania”, Romania

ITEMA Conference 2024 Selected Papers: ISBN 978-86-80194-90-5, ISSN 2683-5991, DOI: https://doi.org/10.31410/ITEMA.S.P.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.