When we chatted with IHR award nominees at the end of last year about their 2025 talent acquisition predictions, the first words out of their mouths were “AI, obviously.”
Over the last few years, AI tools have taken HR by storm. Automation, predictive analytics, machine learning — all promising to revolutionise how you do your job.
But what about using AI for HR compliance?
A McKinsey study found that global AI adoption was expected to deliver $4.4 trillion USD in value every year. Another study found that at least 38% of HR leaders are looking for AI solutions that boost their team’s efficiency.
That’s all great for the folks over in TA, but compliance is a complicated, ever-changing beast. Implementing compliance management using AI takes careful consideration.
Luckily for you, we’ve considered it.
But first: the fundamentals of AI
We’ve all messed around with chatGPT and been impressed at its ability to spit out mediocre emails. But to responsibly implement AI in HR compliance, we need to review some basics.
Artificial intelligence is a program that harnesses a large set of data and uses machine learning techniques to see patterns that we can’t, make predictions, and automate processes.
Modern life has thousands of data points that AI can learn from, whether it’s the cereal that you buy every week for breakfast or the fact that you always call your mum at 5pm on a Thursday as you’re walking home from work.
AI is great at sifting through more data than we’ll ever know what to do with. But it’s only as good as the data it’s trained on and the algorithms built into it.
Should I use AI for HR compliance?
At its core, HR compliance is about:
- Making sure employees trust your company
- Avoiding fines and penalties
- Building up organisational resilience
The consequences of messing up are big. But AI has the potential to help save time with things like:
- Drafting and writing policies
- Training employees on policies
- Automating repetitive tasks like data entry
- Automatically updating out-of-date documents
- Monitoring your industry news for policy updates
- Managing documentation and flagging potential risks
- Getting alerts about expiring or incomplete documents
- Localising onboarding flows for new employees by role or location
- Providing faster access to employees looking for more information
- Identifying compliance issues through risk assessments and audits
It doesn’t take an eagle eye to notice that’s a long list, with a lot of time-saving in there!
So, can we call AI a game changer for busy HR compliance teams and stretched people functions that don’t have a dedicated compliance manager?
That sounds great. What could go wrong?
The potential for AI to simplify your workload is high. But we also promised a no-BS guide, so we’re going to dive into the ways that using AI for HR compliance can get a little…sticky.
AI is still very new
ChatGPT, AI’s first big culture moment, only launched in November 2022. Since then, AI programs of all kinds have had their glitches, whether it’s AI hallucinations (reporting things that aren’t true), wonky image renders, or just providing plain false information.
Data privacy is more important than ever
According to Deloitte, 62% of businesses say data privacy is their biggest concern when introducing AI tools in HR.
And with AI being trained on large data sets, it’s important to make sure that you’re complying with regulations like GDPR and the upcoming EU AI Act.
Data sets are only as good as the people putting them together
Anyone who’s taken a statistics course could probably tell you that data isn’t objective. In fact, it’s quite easily manipulated. If a data set is biased, then the output of your AI algorithm will be, too.
For example, if a company trains an AI to screen their candidate CVs but hasn’t addressed gender bias in their hiring practices, the AI will be just as biased. Any bugs in your existing process will be reflected in the data you give an AI.
Ethical obligations
The EU’s regulatory AI framework states that “AI systems should be overseen by people, rather than by automation, to prevent harmful outcomes.”
Any AI implemented in the workplace has implications for employees, so prioritising human connection and a clear AI strategy will help alleviate concerns and make sure everyone’s on board. Any programs you implement should be evidence-backed, and you should consider the long-term costs and benefits to your organisation and your workforce.
Four steps for implementing effective AI HR compliance tools
You’ve evaluated the risks and the benefits of implementing AI tools for HR compliance, and you’re ready to take the leap — exciting times.
But…how do you actually implement what you need?
1. Figure out the problem you’re trying to solve
AI for AI’s sake isn’t going to help anyone. To responsibly implement AI, it needs a purpose — whether that’s freeing up time for more focused work, training employees on compliance requirements, or flagging when documents get overdue.
Get different stakeholders involved, along with the people who’ll actually be using it (if you’re not a one-person show) and make sure it fits with existing processes.
2. Research, research, research
With AI, it’s incredibly important to do your due diligence. But if you’re working in compliance, you already knew that.
Look for a product that explains how it works, and doesn’t hide behind technical jargon. Check Capterra and Google reviews, and talk to other users or read case studies.
Make sure it’s trained on diverse data sets with a robust algorithm that actually solves for what you need.
3. Implement it properly
If you didn’t get stakeholders involved in the first step, do it now. Make sure they have access to training that teaches them how to properly use the new tool, and how it fits into your company’s existing workflow.
Consider starting small, with annoying admin tasks like data entry and clearing files, before you do anything splashier.
And if you don’t want to play IT, make sure there’s an existing knowledge base to help with troubleshooting or set one up.
4. Stay ethical and transparent
Even once you’re in the swing of things, there should always be a human overseeing and reviewing the decisions and actions that your AI executes on.
Make sure candidates are informed about what’s happening with their data. Consider developing a company-wide AI policy that:
- Informs employees or candidates about how you’re using their data
- Ensures your company is collecting a minimum level of data — only what’s necessary, kept for as little time as possible
- Sets benchmarks for regular assessment and reviews, even if the tool isn’t high risk
At Zinc, we make a point of saying that all our CVs are run through a human recruiter and aren’t screened by AI, which helps build trust with candidates.
Final thoughts: Should you use AI for HR compliance?
At its best, AI is an add-on that makes your life easier and frees you up to focus on the big picture.
At its worst, it’s a major risk to security, data privacy, and employee trust.
And not all AI tools are created equal. Some operate by churning through huge amounts of data, while others are fairly low-risk. Only you can decide what’s appropriate for your business and what will have the most impact.
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