Legal and Ethical Challenges for HR in Machine Learning

The technology of machine learning, a type of artificial intelligence, will enable organizations to analyze their use and deployment of human resources (HR) in new ways that ultimately will allow them to manage more effectively, but it will also present challenges for HR managers who are unprepared. In this paper we discuss some of the legal and ethical concerns in the HR context that accompany machine learning. Legal concerns include possible violations of both US employment discrimination laws and the provisions of the European General Data Protection Regulation, while ethical concerns for HR revolve around employee desires for privacy and justice. We assess that some data analysis activities that are legal nonetheless might not be appropriate in some cases and might be demotivating to employees, resulting in lowered performance or even counterproductive behaviors if HR mishandles the context. We conclude by offering guidelines for HR managers to assess the appropriateness of machine learning projects.