Employers in Herefordshire are being urged to exercise caution when using AI-powered tools for HR advice and employment law guidance, following reports of serious consequences for businesses.
Local HR expert, Lorna Simpson, is warning that while artificial intelligence tools can be useful for streamlining some processes, they can also lead to significant risks when relied upon for complex HR decisions.
Lorna, who runs Marches HR based in Hereford, said, “AI tools are an exciting addition to the workplace, but when it comes to employment law and HR advice, the risks of solely relying on them are too great.
“For example, iTutorGroup, a company in the USA using AI for hiring, was sued for age discrimination after their AI system automatically rejected older applicants. They ended up paying $365,000 to settle the claim. Cases like this highlight how AI can get it badly wrong, leading to costly legal and reputational damage.”
Lorna also pointed out that AI systems often work with outdated or incomplete information. She added, “Employment law’s constantly evolving and chatbots often don’t have access to the latest legislation. Acting on outdated or inaccurate advice can leave businesses exposed to legal risks, including potential employment tribunals.”
Additionally, chatbots may provide generic or country-specific advice that doesn’t align with UK laws and regulations, further increasing the likelihood of mistakes.
Lorna continued, “When it comes to HR matters, there’s no substitute for human expertise. HR professionals dedicate their time to staying updated with legal changes and understanding the nuances of every situation. Organisations need tailored, accurate advice and cutting corners with AI could ultimately cost far more in the long run.”
As an award-winning, independent HR consultancy, Marches HR support small businesses and charities employing up to 50 people with a wide range of people management services and advise employers on staying compliant with the latest legislation. Their next free HR Clinic is taking place in Hereford on 16th April for details please see our whats on page.
You can book your free 1:1 slot via www.marcheshr.co.uk/events
Marches HR was established in 2022 and the team specialise in bringing warmth, simplicity and a personal touch to your HR processes.
